In fiscal 2017, Calstock Inc. decided to shorten the amount of time it allowed customers to pay amounts they owed from 45 days to 30 days. What will the impact of this policy change be on cash from operations in 2017?
Answer to relevant QuestionsWhy is the amount expensed for wages during a period usually not the same as the amount paid in wages during that period? Managers often receive bonuses based on the net income of the entities they manage. Do you think it would be better to use cash from operations as a basis to award bonuses rather than net income? Explain your answer.Dickens Tailor Shop (Dickens) makes tailored-to-measure suits, jackets, and pants for men and women. Customers who are interested in purchasing tailored-to-measure clothing make an appointment with one of Dickens’ tailors, ...You are provided the following information about Clarke Inc. (Clarke) for 2018:Net income .................. $ 437,500Accounts receivable on January 1, 2018 ....... 1,375,000Accounts receivable on December 31, 2018...... ...In its May 31, 2017 annual report, Maloneck Ltd. (Maloneck) reported that it had inventory of $175,000 and accounts payable of $104,000 on May 31, 2016, and inventory of $196,000 and accounts payable of $122,000 on May 31, ...
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