If cost of sales is $300 000, inventory has increased by $12 000 and creditors have decreased by $20 000 what is the amount of cash paid for the purchase of goods for resale? 1) $288 000 2) $320 000 3) $268 000 4) $332 000 What effect does the following journal entry have on cash flows? DR Depreciation expense $55 000 CR Accumulated depreciation $55 000 1) No effect on outflows or inflows 2) Decrease outflows 3) Decrease inflows 4) Increase outflows