Question
In-N-Out Burger sells land with an acquisition cost of $204,000 for $316,000 in cash. Assume that In-N-Out Burger pays taxes immediately at a 40% rate.
In-N-Out Burger sells land with an acquisition cost of $204,000 for $316,000 in cash. Assume that In-N-Out Burger pays taxes immediately at a 40% rate. What's the overall impact on assets?
| a. | Increase in $122,400 | |
| b. | Increase in $67,200 | |
| c. | Increase in $189,600 | |
| d. | Increase in $126,400
|
Toro Company recognized $624,000 of cost of goods sold in 2019, in addition its implementation of a just-in-time inventory system allowed it to reduce its inventory from $313,000 at the beginning of the year to $230,000 at the end of 2019. How much cash did Toro spend for inventory in 2019?
| a. | $1,167,000 | |
| b. | $541,000 | |
| c. | $81,000 | |
| d. | $707,000 |
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
