You Own a Candy Bar Company and Are Considering Changing

question 2

Essay

You own a candy bar company and are considering changing your packaging (candy wrapper or box)to be more environmentally friendly by using different (recycled or biodegradable)materials and less of those materials. This is a very socially responsible strategy on your part, but what functions of packaging must you not lose in this change?

Interpret the impacts of changes in current asset and liability accounts on cash flows.

Recognize the significance and reporting of noncash investing and financing activities.

Calculate specific cash flow amounts, such as cash received from the sale of equipment or dividends received.

Understand how the cash flow statement is affected by changes in inventory, accounts receivable, and accounts payable.

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Definitions:

Short Notice

A term indicating that something is happening or is required to happen with minimal warning or preparation time.

Financial Lease

A type of lease where the lessee essentially rents an asset for most of its useful life and the lease terms closely resemble the conditions of outright ownership.

Long-term

Refers to an extended period of time, typically over one year, used in the context of investments, loans, or planning, indicating a focus on future benefits rather than immediate outcomes.

Maintenance

The tasks and actions taken to preserve or restore equipment, systems, or structures to an operational condition or to prevent failure.