During the Year, Al's Tools Decreased Its Accounts Receivable by $160

question 32

Multiple Choice

During the year, Al's Tools decreased its accounts receivable by $160, increased its inventory by $115, and decreased its accounts payable by $70. How did these three accounts affect the sources of uses of cash by the firm?

• A) Net source of cash of $120
• B) Net source of cash of $205
• C) Net source of cash of $45
• D) Net use of cash of $115
• E) Net use of cash of $25

Comprehend the importance of debt measures in a financial context.

Grasp the concept of profitability and how it is measured.

Develop the ability to categorize financial metrics into liquidity, asset management, debt, and profitability.

Enhance analytical skills by applying theoretical knowledge to practical exercises.

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Definitions:

Auricle

Another term for the outer part of the ear; it helps in directing sound waves into the ear canal.

Trauma

A deeply distressing or disturbing experience, which can be physical or psychological in nature.

Drainage

The removal or withdrawal of fluid, such as water or pus, from a particular area of the body, often using surgical or medical techniques.

Otitis Media

An infection of the middle ear, characterized by the accumulation of fluid and often causing ear pain and fevers, particularly common in children.