Wise's Corner Grocer Had the Following Current Account Values

question 51

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:

LIFO Inventory Costs

An inventory valuation method where the last items placed in inventory are the first ones to be used or sold, affecting cost of goods sold and inventory value.

Cost of Goods Sold

Expenses directly related to the production of a company's sold merchandise.

Inventory-related Selling Costs

These are expenses directly tied to the selling of inventory items, such as shipping and handling fees.

Inventory Inspection Costs

Expenses associated with verifying the quantity and quality of inventory on hand.