Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gerbera Inc. (GI) acquired Daisy Co. (DC) on 31 March 20X7, midway through the accounting year ended 30 September. The consolidated statement of cash flows
Gerbera Inc. (GI) acquired Daisy Co. (DC) on 31 March 20X7, midway through the accounting year ended 30 September. The consolidated statement of cash flows is prepared using the indirect method. GI's consolidated statement of financial position for the years ended 30 September 20X7 and 20X8 include: 30 September 20X8 30 September 20X7 $ $ Current assets Inventory 526,200 427,560 On 31 March 20X7, DC's inventory is $96,250. What is the cash flow adjustment to operating activities within the consolidated statement of cash flows to reflect the movement in inventories? Solution A.$2,390 increase. B.$2,390 decrease. C.$194,890 increase. D.$194,890 decrease
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started