Cash Flow Effects
Grogan's inventory increased by $50,000 during the year, and its accounts payable increased by $35,000. Indicate how each of those changes would be reflected on a statement of cash flows prepared using the indirect method.
Inventory Methods Using a Perpetual System
Will the dollar amount assigned to inventory differ when a company uses the weighted average cost method depending on whether a periodic or perpetual inventory system is used? Explain your answer.