The following summary data are for Gwynn Company: All current assets and current liabilities relate to operations.

Question:

The following summary data are for Gwynn Company:

All current assets and current liabilities relate to operations.
Instructions:
1. Compute net cash provided by (used in) operating activities for 2012 and 2013.
2. How would the numbers you computed in (1) change if Gwynn had decided to delay payment of $40,000 in accounts payable from late 2012 to early 2013? This will increase both Cash and Accounts Payable as of December 31, 2012; the December 31, 2013, amounts will be unaffected.
3. Ignore the change described in (2). How would the numbers you computed in (1) change if Gwynn had decided to delay purchase of $40,000 of inventory for cash from late 2012 to early 2013? This will increase cash but decrease inventory as of December 31, 2012; the December 31, 2013, amounts will be unaffected.
4. Can net cash from operations be manipulated? Explain your answer.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...