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If Cost of Sales Is $500 000, Inventory Has Increased

question 9

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If cost of sales is $500 000, inventory has increased by $8000 and creditors have decreased by $15 000 what is the amount of cash paid for the purchase of goods for resale?


Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed annually, affecting loans, mortgages, and savings.

Unlevered Cost

The cost of an investment that does not take into account the effect of debt in the capital structure.

After-Tax Net

The net income of an individual or business after all taxes have been deducted, representing the amount of money actually available for spending or investment.

Corporate Tax

A tax imposed on the net income or profit of corporations and other businesses.

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