Playdough Products Earned Net Income of $500,000 in 2011

question 30

Essay

Playdough Products earned net income of $500,000 in 2011.The firm increased its accounts receivable during the year by $220,000.The book value of its assets declined by the year's depreciation charge,which was $140,000,and the market value of its assets increased by $50,000.Based only on this information,how much cash did Playdough Products generate during the year? Please ignore taxes for this problem.

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Definitions:

Materials Cost

The expense associated with the raw materials and components required for manufacturing a product.

Processing Department

A division within a factory where a specific stage of production is carried out.

Total Cost Transferred

The entire sum of costs that have been allocated from one department or process to another within an organization.

Processing Department

A specialized unit within a manufacturing facility where a specific type of processing or production stage is carried out.