Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GameStart, Corp. 2018 and 2019 Balance Sheets ($ in millions) 2018 2019 2018 2019 Cash $ 300 $ 330 Accounts payable $ 1650 $ 1560

GameStart, Corp.

2018 and 2019 Balance Sheets

($ in millions)

2018

2019

2018

2019

Cash

$

300

$

330

Accounts payable

$

1650

$

1560

Accounts receivable

1140

1040

Long-term debt

1170

1370

Inventory

2020

1800

Common stock

3480

3460

Total current assets

$

3460

$

3170

Retained earnings

710

960

Net fixed assets

3550

4180

Total assets

$

7010

$

7350

Total liabilities and equity

$

7010

$

7350

GameStart, Corp.

2019 Income Statement

($ in millions)

Net sales

$

10,020

Cost of goods sold

8110

Depreciation

500

Earnings before interest and taxes

$

1410

Interest paid

118

Taxable income

$

1292

Taxes

452

Net income

$

840

Based on the information above, is the change in accounts payable a cash inflow or outflow?

Based on the information above, is the change in inventory a cash inflow or outflow?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Geography Of Finance

Authors: Gordon L. Clark, Darius Wójcik

1st Edition

0199213364, 978-0199213368

More Books

Students also viewed these Finance questions