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Use the following information regarding Luxury Interiors to answer the next 2 questions:

  • Revenue = $85 million
  • Cost of goods sold = $44 million
  • Decrease in inventory = $7 million
  • Increase in accounts payable = $4 million
  • Decrease in accounts receivable = $5 million

Question 1:
Cash paid to suppliers is closest to:
A. $37 million.
B. $47 million.
C. $33 million.

Question 2:
Cash received from customers is closest to:
A. $90 million.
B. $80 million.
C. $73 million.

Video Explanation and Answers