Avatar Company Uses the Indirect Method to Prepare the Cash

question 39

True/False

Avatar Company uses the indirect method to prepare the cash flow statement.Please refer to the following section of the comparative balance sheet:
$\begin{array}{|l|r|r|r|}\hline & {2017} &{2016} &{\text { Increase/decrease }} \\\hline \text { Cash } & \$ 33000 & \$ 18000 & \$ 15000 \\\hline \text { Accounts receivable } & 22000 & 35000 & (13000) \\\hline \text { Inventory } & 170000 & 115000 & 55000 \\\hline \text { Total assets } & \$ 225000 & \$ 168000 & \$ 57000 \\\hline\end{array}$ The change in inventory will be shown as a positive cash flow in the adjustments to Profit.

Calculate damages and apply remedies in situations of contract breaches involving the sale of goods.

Recognize the conditions under which specific performance and cover can be employed as remedies.

Determine the rights of sellers and buyers regarding the recovery and rejection of goods, including situations of insolvency.

Differentiate between types of damages (liquidated, incidental, consequential) within the context of UCC remedies.

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Definitions:

Delegates

Representatives who are chosen or elected to attend and vote at a conference or convention on behalf of a group.

Three-Fifths Compromise

An agreement made during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for the purposes of taxation and representation in Congress.

Representation

The action of speaking or acting on behalf of someone or the state of being so represented.

Revolutionary War Debt

Revolutionary War Debt refers to the financial obligations incurred by the United States during the American Revolutionary War, which the government sought to repay post-war.