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2 years ago

Using the information below calculate the cash flow impact of owc for quarter 3

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1 answer:

Angelina_Jolie [31]2 years ago

3 0

The cashflow impact of OWC for the quarter 3 is given as: (225.7) (Option B). See the explanation below.

<h3>What is cash outflow?</h3>

When money leaves your company, this is referred to as cash outflow. In the case of operations, cash outflow happens when you pay your employees' wages and when you pay your rent.

<h3>What is the computation that justified the above answer?</h3>

The following operations or transactions occurred:

Decrease in Receivables [670 - 630] = 40

Add Decrease in Prepaid Assets [130 - 126] = 4

Add Decrease in Inventory [901 - 891] = 10

Less Decrease in Payable [789 - 533.3] = (255.7)

Less Decrease Accrued liabilities from current liabilities

[ 657 - 653] = (4)

Less Decrease in deferred revenue in current liabilities

[290 - 270] =<u> (20)</u>

Adding all sub-results, we achieve <u> (225.7)</u>

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