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Vesna [10]
4 years ago
13

Company X's current assets increased by $40 million from 2007 to 2008, while the company's current liabilities increased by $25

million over the same period. The cash impact of the change in working capital was:
a. A decrease of $15 million
b. An increase of $15 million
c. An increase of $40 million
d. An increase of $25 million
Business
1 answer:
Virty [35]4 years ago
7 0

Answer:

b. An increase of $15 million

Explanation:

The computation of the cash impact of the change in working capital is shown below:

As we know that

Working capital = Current assets - current liabilities

So, the change in working capital is

= Increase in current assets  - increased in current liabilities

= $40 million - $25 million

= $15 million

Hence, the b option is correct

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3 years ago
Ford Corporation is pulling together its direct labor budget for the next two months. Each unit of output requires 0.05 direct l
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Answer:

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Explanation:

\left[\begin{array}{ccc}-&$June&$July\\$Units&3,800&4,300\\$Hours per Unit&0.05&0.05\\$Labor Hour&190&215\\$Rate&9.9&9.9\\$Labor Cost&1,881&2,128.5\\\end{array}\right]

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<u>Key -terms</u>

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4 0
3 years ago
Co. paid a $0.632 dividend per share in 2013, which grew to $0.76 in 2016. This growth is expected to continue. What is the valu
loris [4]

Answer:

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3 years ago
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