Test: Test 3 This ?: 2 pts End of this year $165.000 End of prior year $100,000

Question

Test: Test 3 This ?: 2 pts End of this year $165.000 End of prior year $100,000 Cost of goods sold Sales revenue Accounts payable Inventory Salary payable Salary expense Relates solely to the acquisition of inventory What will appear in the 830,000 67,000 86,000 13,000 49,000 O A. OB, The increase of $66,000 will be added to net income The increase of S05 will be from net income. c. The incroase cf Ses,000 wa be added to sales revere O D. The increase of $65,000 will be subtracted from sales revenue

Explanation / Answer

The correct option is B . $65000 will be subtracted from net income.

Increase in current assets consider cash outflow in operating activities. Decrease in current assets is considered cash inflows in operating activities.Thus accounts receivables increased from $100000 to $165000 so it is increas in current assets which results cash outflow.

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