If Credit Sales Are $800 000 and Debtors Have Increased

question 40

Short Answer

If credit sales are $800 000 and debtors have increased by $60 000 over the period cash inflows from debtors on the statement of cash flows will be __________.

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Definitions:

Profit-Maximizing Principle

The concept that firms operate to achieve the highest profit possible, which involves setting output where marginal costs equal marginal revenues.

Marginal Analysis

An examination of the benefits and costs of one additional unit of production or consumption.

Marginal Benefit

Refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Benefit

The additional satisfaction or utility gained by consuming one more unit of a good or service, important for decision-making in consumption and production.