Question

L A A A A * A.D.A. E SEE AaBbCcDc AaBbCcDc AaBb C AaBbcc 1 Normal 1 No Spac... Heading 1 Heading 2 Paragraph Styles • 54. Gross Profit - Selling, General & Administrative Expense - Research & Development Expense - Depreciation & Amortization Expense = • 55. If Inventory decreases does Cash Flow Increase or Decrease? • 56. If stock is issued, does Cash Flow Increase or Decrease? • 57. If Accounts Receivable decreases does Cash Flow Increase or Decrease? 1% & *
Just vocab, thanks in advance

Answer 1

Answer 54 -

Gross profit - selling, general and administrative expense - research and development expense - depreciation and amortization expense = Net profit or net loss.

Gross profit is derived after deducting cost of goods sold from sales. Where as net profit is derived by deducting indirect and administrative expense from gross profit.

Answer 55 -

If inventory decreases, then cash flow is increased. Because, when inventory is decreased, means inventory is sold, which results that the buyer pays for the inventory. It means that cash flow is increased.

Answer 56 -

If stock is issued, cash flow is increased. Stock is issued for funding the company. Whenever the stock is issued, whether equity or preferred, cash is flown in the company.

Answer 57 -

If accounts Receivable decreases, then cash flow is increased. It means debtor has paid the amount owed to you, which has resulted in decrease of accounts Receivable. And cash flown is increased.