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While analyzing Winston Company's 20Y1 and 20Y2 financial statements, you note the following: (000s omitted) 20Y1 20Y2 Sales $ 4,000 $ 5,000 Depreciation expense 200

While analyzing Winston Company's 20Y1 and 20Y2 financial statements, you note the following:

(000s omitted)

20Y1

20Y2

Sales

$ 4,000

$ 5,000

Depreciation expense

200

240

Cash cost of goods sold

2,800

3,510

Gross profit

1,000

1,250

Selling, General, and Administrative

600

775

Operating profit

400

475

Interest expense

100

110

Net profit before tax

$ 300

$ 365

What is the cash impact of the change in cash cost of goods sold as a percentage of sales in 20Y2?

This is a single choice question. Selections are automatically selected as you use arrow to move.

a. An increase of approximately $10,000 b. A decrease of approximately $10,000 c. An increase of approximately $250,000 d. A decrease of approximately $710,000

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