Points
%
Score
:
20
.
09
/
22 91
.
32
8
.
Explanation
:
Award
:
2 out of 2
.
00 points
Hint #1
During the last year of operations, Theta’s accounts receivable increased by $27,000, accounts
payable increased by $13,500, and inventories decreased by $3,200. What is the total impact of
these changes on the difference between profits and cash flow?
During the last year of operations, Theta’s accounts receivable increased by $27,000, accounts
payable increased by $13,500, and inventories decreased by $3,200. What is the total impact of
these changes on the difference between profits and cash flow?
An increase in accounts receivable reduces cash flow by $27,000. An increase in accounts
payable increases cash flow by $13,500. A decrease in inventory increases cash flow by $3,200.
The total impact is a reduction in cash flow by $10,300.
Total impact
Total impact
decreased
decreased
by
by $
$ 10,300
10,300
Hints
ALLELLEELLPELS
LALLA
LLL
