A Recipe for Spaghetti Sauce Requires 6 Bottles of Ketchup

question 49

Short Answer

A recipe for spaghetti sauce requires 6 bottles of ketchup to make 8 gallons of sauce. How many bottles of ketchup are needed to make 56 gallons of sauce?

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Definitions:

Merchandise Inventory

The collection of goods a company has in stock and available for sale to customers.

Accounts Receivable

Funds that customers owe to a business for products or services that have been provided but remain unpaid.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions to calculate net cash from operating activities.

Operating Activities

Transactions related to the primary activities of a business, such as selling goods and services, which are reflected in the cash flow statement.