Wise's Corner Grocer Had the Following Current Account Values A)net Use of Cash of $37
B)net Use of Cash

question 31

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? $$\begin{array} { l c c } & \underline { 2011 } & \underline { 2012 } \\\text { Cash } & 90 & 112 \\\text { Accounts receivable } & 309 & 321 \\\text { Inventory } & 919 & 850 \\\text { Accounts payable } & \$ 617 & \$ 714\end{array}$$

• 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:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Demand Curve

A diagram displaying how the cost of a product is connected to the consumer demand for it.

Cost Functions

A mathematical relationship expressing the cost of production as a function of the quantity of goods produced.

Brand Name

A name owned by a particular firm that distinguishes its products from those of other firms.