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Unformatted text preview: outflow obligations. An increase in inventory signals that a company has spent more money to purchase more raw materials. If the inventory was paid with either cash or credit, the increase in the value of inventory is deducted from net sales or increasing account payable. Also this company spent too much money for purchasing inventory, even though they have a lot of account receivable and account payable. And I don’t know why this company puts “other” in statement. “Decrease in other current assets” this company has to specify which current assets were decreased. Investors don’t see this word “other”. They would not like this. Finally, the net cash by operating activities are negative to 9,216,891. Even though, they earned lots of revenue, they have very dangerous status that they don’t have enough cash to pay their bills....
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- Fall '09
- Sales, Generally Accepted Accounting Principles, Gracer Yung Joon Hyun Kim, cash outflow obligations