Bixby Company paid cash to purchase two identical inventory items. The first purchase cost $8.00 cash and the second cost $9.00 cash. Bixby sold one inventory item for $10.00 cash. Based on this information alone:

a. cash flow from operating activities would be $1.50 assuming a weighted average cost flow.

b. the amount of cash flow from operating activities would not be affected by the cost flow method.

c. cash flow from operating activities would be $2.00 assuming a FIFO cost flow.

d. cash flow from operating activities would be $1.00 assuming a LIFO cost flow.

Question

Bixby Company paid cash to purchase two identical inventory items. The first purchase cost $8.00 cash and the second cost $9.00 cash. Bixby sold one inventory item for $10.00 cash. Based on this information alone:

a. cash flow from operating activities would be $1.50 assuming a weighted average cost flow.

b. the amount of cash flow from operating activities would not be affected by the cost flow method.

c. cash flow from operating activities would be $2.00 assuming a FIFO cost flow.

d. cash flow from operating activities would be $1.00 assuming a LIFO cost flow.

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Question

Bixby Company paid cash to purchase two identical inventory items. The first purchase cost $8.00 cash and the second cost $9.00 cash. Bixby sold one

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