Which of the Following Can a Cash Flow Analysis of the Final

question 162

Multiple Choice

Which of the following can a cash flow analysis of the final disposal of a capital asset (for example, machinery used in the operation of a business) not produce?

• A) A net cash outflow.
• B) A net cash inflow.
• C) An income tax consequence.
• D) An operating gain or loss.
• E) An after-tax cash outflow.

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Definitions:

Manufacturing Corporation

A manufacturing corporation is a company engaged in the industrial production of goods and products.

Produced Units

The total number of units manufactured during a specific period.

Raw Materials

Raw materials are the basic, unprocessed physical materials required for manufacturing products.

Finished Goods Inventory

The stock of completed products ready for sale but not yet sold, representing one of the final stages in the production process.