Asked by
Naomi Serana
on Nov 14, 2024
Verified
Cost of goods sold + an increase in inventory + an increase in accounts payable = cash paid to suppliers during a period.
Cost of Goods Sold
The direct expenses tied to the production of goods sold by a company, including material, labor, and overhead costs, directly affecting gross profit.
Accounts Payable
A liability representing an amount owed by an entity to its creditors/suppliers for goods and services purchased on credit.
- Acquire knowledge of the variances between direct and indirect strategies in presenting cash flows from operating activities.
- Become familiar with the modifications necessary to convert net income into net cash generated from operating activities through the indirect method.
Verified Answer
BR
Learning Objectives
- Acquire knowledge of the variances between direct and indirect strategies in presenting cash flows from operating activities.
- Become familiar with the modifications necessary to convert net income into net cash generated from operating activities through the indirect method.
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