Concept explainers
Cash flow statement:
A financial statement which reports the
JIT Inventory system:
JIT Inventory system is a method adopted by manufacturers with an objective of maximizing the profit by reducing the holding cost on unnecessary work in process and finished goods inventory.
To determine:
1. Identify the impact on operating
2. What impact would JIT inventory system have on Apple’s operating income? Link the answer to your response for part 1.
3. Would the move to a JIT system have a one-time or recurring impact on operating cash flow?
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Connect Access Card for Fundamental Accounting Principles
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