Planet Music buys all of its inventory on credit. During 2015, Planet Music's inventory account increased by $10,000. Which of the following statements must be true for Planet Music during 2015? It made payments of less than $10,000 to suppliers. It made cash payments of $10,000 to suppliers. It made more cash payments to its suppliers than it recorded as cost of goods sold. It paid less cash to suppliers than it recorded as cost of goods sold.

Planet Music buys all of its inventory on credit. During 2015, Planet Music's inventory account increased by $10,000. Which of the following statements must be true for Planet Music during 2015? It made payments of less than $10,000 to suppliers. It made cash payments of $10,000 to suppliers. It made more cash payments to its suppliers than it recorded as cost of goods sold. It paid less cash to suppliers than it recorded as cost of goods sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Tech Company is a medium-sized consumer electronics retailer. The company reported $155,000,000 in revenues for 2007 and $110,050,000 in Costs of Goods Sold (COGS). In the same year, Tech Co. held an average of $16705510in inventory. Inventory cost at Tech Co. is 27 percent per year. What is the per unit inventory cost ($) for an MP3 player sold at $46? Assume that the margin corresponds to the retailer’s average margin.
In fiscal 2017 and 2016, Estée Lauder's financial statements included the following items. Inventory Receivables $ millions Payables Sales Cost of goods sold Cash cycle 2017 2016 $ 1,583 $ 1,264 1,242 1,258 2,924 2,349 14,071 11, 262 2,876 2,181 What was its cash cycle? Assume 365 days in a year. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.) (228) days
Urmila ben
Need Help with This
During 2017, Windsor Inc. changed from LIFO to FIFO inventory pricing. Windsor began operations in 2015 and its pretax income in 2016 and 2015 under LIFO was $610,000 and $706,000, respectively. Pretax income using FIFO pricing in the prior years would have been $636,000 in 2015 and $762,000 in 2016. In 2017, Windsor reported pretax income using FIFO pricing of $731,000. Show comparative income statements for Windsor beginning with “Income before income tax,” as presented in the 2017 income statement. The tax rate for all years is 30%. 2017 2016 2015 Income before income tax $enter a dollar amount $enter a dollar amount $enter a dollar amount Income tax enter a dollar amount enter a dollar amount enter a dollar amount Net Income $enter a total amount $enter a total amount