Reference no: EM132557340

Question 1: Working Capital. Identify the working capital accounts related to (a) revenues recognized and deferred, (b) cost of goods sold, (c) employee salary and wages, and (d) income tax expense. For each account, indicate whether an increase in the working capital asset or liability would be an addition or subtraction when reconciling from net income to cash flows from operations.

A) Revenues recognized and deferred
Working capital account: Deferred revenue

B) Cost of goods sold
Working capital account: Inventory or accounts receivable

C) Employee salary and wages
Working capital account: Salary and wages payable

D) Income tax expense
Working capital account: Income tax payable