Money because the more money you invest the mor you have to spend
Answer: Explicit Costs
I hope it helps
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Answer:
$4,000
Explanation:
The computation of the cash to be required to settle the liability is shown below:
= Purchase value of inventory - returned inventory which was purchased
= $5,000 - $1,000
= $4,000
It is a net purchase plus it is the cash required to settle the liability
There is no discount applied in the question as dates are not given so we ignored it.