Wise's Corner Grocer Had the Following Current Account Values

question 88

Multiple Choice

Wise's Corner Grocer had the following current account values.What effect did the change in net working capital have on the firm's cash flows for 2012?

• A)net use of cash of $37
• B)net use of cash of $83
• C)net source of cash of $83
• D)net source of cash of $132
• E)net source of cash of $135

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Definitions:

Ending Inventory

The value of goods that remain unsold at the end of an accounting period.

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out).

LIFO

"Last In, First Out" method of inventory valuation where the most recently produced items are recorded as sold first.

FIFO

First In, First Out, an inventory valuation method where goods purchased or produced first are sold or consumed first.