Question
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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