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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 39
An increase in inventories is deducted from net income to arrive at operating cash flow because
A) cash payments to customers were larger than the purchases made during the period.
B) purchases are larger than the cost of goods sold by the amount that inventories increased.
C) cash payments to customers were less than the purchases made during the period.
D) purchases are less than the cost of goods sold by the amount that inventories increased.
E) All of the above.
A) cash payments to customers were larger than the purchases made during the period.
B) purchases are larger than the cost of goods sold by the amount that inventories increased.
C) cash payments to customers were less than the purchases made during the period.
D) purchases are less than the cost of goods sold by the amount that inventories increased.
E) All of the above.
Explanation
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Because, there is more cash out flow for...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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