An increase in accounts receivable is deducted from net income to obtain operating cash flows because a. cash collections from customers were less than the revenues reported. b. cash collections increased due to increasing sales. c. cash collections decreased due to declining sales. d. cash collections from customers were greater than the revenues reported. e. None of these.
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Business, 21.06.2019 19:40
Uppose stanley's office supply purchases 50,000 boxes of pens every year. ordering costs are $100 per order and carrying costs are $0.40 per box. moreover, management has determined that the eoq is 5,000 boxes. the vendor now offers a quantity discount of $0.20 per box if the company buys pens in order sizes of 10,000 boxes. determine the before-tax benefit or loss of accepting the quantity discount. (assume the carrying cost remains at $0.40 per box whether or not the discount is taken.)
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An increase in accounts receivable is deducted from net income to obtain operating cash flows becaus...
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