Authentic Exposure Company had the following transactions that took place during the year:
I) Recorded credit sales of $2,500
II) Collected $1,500 from customers
III) Recorded sales returns of $500 and credited the customer's account.
What is the total effect of these transactions on free cash flow?
Cash Flow
A)Increase
B)Decrease
C)No Effect
D)Cannot be determined

Question

Quizplus · Accepted Answer

The Answer of Authentic Exposure Company had the following transactions that took place during the year:
I) Recorded credit sales of $2,500
II) Collected $1,500 from customers
III) Recorded sales returns of $500 and credited the customer's account.
What is the total effect of these transactions on free cash flow?
Cash Flow
A)Increase
B)Decrease
C)No Effect
D)Cannot be determined

Authentic Exposure Company Had the Following Transactions That Took Place