1.2.

3.4.

5.6.

If a firm has positive net income for a fiscal year, the firm may nevertheless show a decrease in cash because of: An increase in accounts receivable Purchase of plant & equipment Repayment of long-term liabilities All of the above Suppose your firm sells finished goods for $5 million. On the balance sheet in finished goods inventory, those goods are listed at $2 million. The customer pays $1 million in cash: your firm gives the customer 30 days to pay the remaining S4 million. Ignore taxes (taxes are 0%). What is the change in finished goods inventory from this transaction? Finished goods inventory increase by $5 million Finished goods inventory increase by $3 million Finished goods inventory increase by $4 million Finished goods inventory decrease by $2 million Suppose your firm sells finished goods for $5 million. On the balance sheet in finished goods inventory, those goods are listed at $2 million. The customer pays $1 million in cash; your firm gives the customer 30 days to pay the remaining S4 million. Ignore taxes (taxes are 0%). What is the change in revenue from this transaction? Revenue increases by $5 million Revenue increases by $3 million Revenue increases by $4 million Revenue decreases by $2 million Suppose your firm sells finished goods for $5 million. On the balance sheet in finished goods inventory, those goods are listed at $2 million. The customer pays $1 million in cash; your firm gives the customer 30 days to pay the remaining S4 million. Ignore taxes (taxes are 0%). What is the change in net income from this transaction? Net income increases by $5 million Net income increases by $3 million Net income increases by $4 million Net income decreases by $2 million Suppose your firm sells finished goods for $5 million. On the balance sheet in finished goods inventory, those goods are listed at $2 million. The customer pays $1 million in cash; your firm gives the customer 30 days to pay the remaining S4 million. Ignore taxes (taxes are 0%). What is the change in accounts receivable from this transaction? Accounts receivable increase by $5 million Accounts receivable increase by $3 million Accounts receivable increase by $4 million Accounts receivable decrease by $2 million Suppose your firm sells finished goods for $5 million. On the balance sheet in finished goods inventory, those goods are listed at $2 million. The customer pays $1 million in cash; your firm gives the customer 30 days to pay the remaining $4 million. Ignore taxes (taxes are 0%). What is the change in cash from this transaction? Cash increases by $1 million O Cash decreases by $1 million Cash increases by $4 million O Cash decreases by $4 million