Which of the following happens as a result of selling $130 of merchandise to a customer for $200 cash in a state where the sales tax rate is 4%? Multiple Choice ○ Total assets increase by $78. The cash flow from operating activities increases by $208. ○ All of these answer choices are correct. Stockholders' equity increases by $70.
Which of the following happens as a result of selling $130 of merchandise to a customer for $200 cash in a state where the sales tax rate is 4%? Multiple Choice ○ Total assets increase by $78. The cash flow from operating activities increases by $208. ○ All of these answer choices are correct. Stockholders' equity increases by $70.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Which of the following happens as a result of selling $130 of merchandise to a customer for $200 cash in a state where the sales tax rate is 4%?
Multiple Choice
○ Total assets increase by $78.
The cash flow from operating activities increases by $208.
○ All of these answer choices are correct.
Stockholders' equity increases by $70.
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