ACC 110 Study Guide - Operating Cash Flow, Cash Flow Statement, Cash Cash

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14 Apr 2011
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Cash flow, profitability, and the cash flow statement. E5-1: payables deferral period (goods received - suppliers paid) 45 days: inventory self-financing period (supplier paid - cash collected) Average time fabric held in inventory (5 x 30) Less: payables deferral period (from part a: inventory conversion period (goods received inventory sold): 185 days: receivables conversion period (inventory sold cash collected) 15 days: number of days between receiving inventory from suppliers and receiving cash from customers: The only difference between the two scenarios is the accrual net income, which is a result of differing amounts of depreciation expense. 1 www. notesolution. com all other revenues and expenses in both scenarios were in cash, cash from operations is the same under both scenarios. Decrease under ifrs dividend payments can also be classified as operating. Decrease due to the long maturity period this would be considered an. No cash is involved in this transaction (land exchanged for a mortgage.

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