For each transaction below, write the net effect on CurrentAssets (CA), Current Liabilities (CL), Gross Profit (GP), NetIncome Before Taxes (NIBT), and Cash flows from operatingactivities (CFO). Write 0 for no effect and use negative numbers toindicate reductions in accounts or cash outflows. Assume warrantyexpenses are recognized in COGS and bad debt expenses arerecognized in SG&A.
Transaction | CA | CL | GP | NI (pretax) | CFO |
Recognize bad debt expense of $85 | | | | | |
Write off $22 of Accounts Receivable | | | | | |
Recognize warranty expense of $35 | | | | | |
Pay $15 to satisfy warranties previously accrued | | | | | |
Pay $200 for the next 4 months’ rent (not this month) | | | | | |
Recognize $50 of rent expense (previously paid) | | | | | |
Purchase $99 of inventory on account | | | | | |
Collect $72 of Accounts receivable | | | | | |
