Payment of wages to employees is included in the

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Payment of wages to employeesis included in the Operating Section. Becausethis is a cash outflow, this is a use of cash.21)Leak Geeks, a plumbing supply company, sold $25,000 of plumbing supplies to one of their larger customers. The supplies had an inventory value of $12,000. How will the revenue and cash inflow from this transaction impact the accounting equation of Leak Geeks? Please enter the amounts in the boxes below.
23)OWNERS' EQUITYDECREASE$
plus owner's equity decreaseHow will the related expense from this transaction impact the accounting equation of Leak Geeks?INCREASE$ Assets increase24)ASSETSDECREASE$ Assets decrease=INCREASE$ equals liabilities increaseLIABILITIESDECREASE$ equals liabilities decrease+INCREASE$ plus owner's equity increaseOWNERS' EQUITYDECREASE$ plus owner's equity decreaseFirst, assets increaseby $25,000because the company now has that amount of cash, and owners’ equity increasesby $25,000to recognize the revenue associated with thesale.At the same time,assets decreaseby $12,000because the company no longer has thesupplies, and owners’ equity decreasesby $12,000to recognize the expense associated with the sale. Roll over the color-outlined areas to find out more about your answers.25)
Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales were $2 million. Associated with the change in net working capital from year 1 to year 2 is a cash:
26)Initech finances their business using a combination of equity and liabilities. Which of the following numbers is most likely Initech's equity multiplier?
27)Wise Guys Consulting issues an invoice for $9,000 to one of their clients for services provided. The terms of the invoice call for payment 30 days after the invoice date. What would be the impact at the date the services are completed and invoiced?

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