Assume the direct method is used to compute net cash flows from operating activities. For this item extracted from the financial statements-Decrease in Accounts Payable-indicate the effect on cash payments for purchases by choosing one of the following:
A) Add to Cost of Goods Sold to compute cash payments for purchases.
B) Subtract from Cost of Goods Sold to compute cash payments for purchases.
C) Not used to adjust Cost of Goods Sold to compute cash payments for purchases.
A
You might also like to view...
Significant influence equity investments must be accounted for using the ________ method.
A) equity B) consolidation C) discounted cash flow D) acquisition
______ internal recruiting consists of advertising the job openly within the organization, and anyone who meets the qualifications can apply.
A. Closed B. Open C. External D. Crisis
Which of the following flexible work arrangements involves giving employees the freedom to select their working hours within certain hours?
a. flextime b. compressed work week c. swing shifts d. job sharing
Canada Sailboats Company manufactures 10 luxury yachts per month
A compact media center is included in each yacht. Canada Sailboats manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $270, and the fixed costs are $40,000 per month. Justin Blake, the CEO, wishes to increase operating income by $3,000. He has an offer from a foreign producer to provide the media centers at a contract cost of $325 per unit. The required saving in fixed cost in order to achieve his objective would be ________. A) $3,000 B) $550 C) $3,550 D) $2,700