If SuperMart Decides to Offer a Line of Groceries at Its

question 12

Multiple Choice

If SuperMart decides to offer a line of groceries at its discount retail outlet, inventories are expected to increase by $1,200,000, accounts receivable by $300,000 and accounts payable by $500,000. What is the cash outflow for working capital requirements?

• A) $2,000,000
• B) $1,700,000
• C) $1,500,000
• D) $1,000,000

Learn about the role of corporate citizenship and its activities.

Understand consumer rights and business responsibility towards consumer protection.

Know the enforcement agencies and laws regarding workplace safety and consumer rights.

Identify the aspects and importance of ethical, legal, economic, and voluntary dimensions of social responsibility.

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Definitions:

Total Assets

The combined value of all assets owned by a company, including both current and non-current assets.

Trend Statements

Financial statements analyzed over several time periods to identify patterns or trends in a company's financial performance.

Common Size Statements

Financial statements that present all line items as a percentage of a common base figure, facilitating comparison across periods and companies.

Sales Dollar

A term that reflects the total revenue generated from sales activities, measured in dollars.