7 Which ot she followiagstalemients is TRUE Ai Chinges in de

7 Which ot she followiagstalemients is TRUE Ai Chinges in deyresaion exjerse do not aftect a ftrns essh. Io Acovunts peyable appeas sn tie asset side of the balance shert C) A dacrease in e firun inventories inveses that fren\'s Cash Flow Erom Assets D) Anincrease is acounils payabe Mperds the wse of a firti\'s cash sthon-ferm Dhe si Cailb and Equivets $880 uats Reneinable-s0: Accourts Payable a t44tk is Net se90, nrentores $4360:0brCne Lidbaies $1,30 and Working Capita? Other Cureat Asarts A)-510025 9i 51,495 e intenest experer $7-500. Asume no t 9 Revenoe i 343,000, 00cs SS0, GA io $7.508, depneciation expense is $13200 and a tea tatr of 40. What isoperatingcasn row (OT)? A)515300 tO 522 800

Solution

7. C) , decrease in inventories means inventories were sold out during the year from which revenue generated

8) D) $10025 ,

   Total current assets = cash and cash equivalent + Accounts receivables + inventories + other current assets

= 3750 + 8680 + 4360 + 1700

= $18490

Total current liabilities = Accounts payable + short term debt + other current liabilities

= 4415 + 690 + 3360

= 8465

net working capital = 18490 - 8465

= 10025