1 pts D Question 20 Depreciation expense totaled $17,000 for the year; accrued w

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1 pts D Question 20 Depreciation expense totaled $17,000 for the year; accrued wages decreased $2,000, a new car was purchased for $42,000; accounts receivable decreased $9,000; payments on long term debt amounted to 15,000, accounts payable decreased $4,000; net income was $56,000 for the year, proceeds from the issuance of common stock were $45,000; dividends paid totaled $7,500; inventory increased $8,000; What was the net cash provided by operating activities? (don't indlude cents round to the nearest dollar) Question 21 1 pts The gross profit ratio is useful to the manager for which of the following purposes: t can be used to determine the selling price to set for an item it can be used to estimate the amount of inventory lost in a fire. t can be used to determine the amount avaslable fron a given amount of revenue to cover operating expenses MacBook Air

Explanation / Answer

Question 20: CASH FLOW STATEMENT

Question 21: The Gross Profit Ratio is useful to the manager (a) as it can be used to determine the selling price to be set for an item.

Gross Profit is calculated as the ratio of gross profit to Net sales multiplied by 100. So this ratio can be used to calculate the selling price of an item.

PARTICULARS AMOUNT($) AMOUNT($) Net Income 56,000 Add : Depreciation 17,000 Income before working capital changes 73,000 Add : Decrease in accounts receivables 9,000 Less : Increase in inventory (8,000) Decrease in accounts payable (4,000) Decrease in accrued wages (2,000) (14,000) Net Cash provided by operating activities 68,000 *-----------------*----------------------------*-------------*

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