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Question - Entity A operates in a hyperinflationary economy. Entity A has total sales revenue of P1,200,000 before restatement on December 31, 20x1. The sales were earned evenly during the period. The general price indices are as follows:
December 31, 20x0 100
Average - 20x2 180
December 31, 20x1 200
What is restated amount of the sales?
a. 1,333,333 c. 2,400,000
b. 1,300,000 d. 1,200,000
Using only the amounts given, compute net cash provided by operations, both without and with the reclassification of the receivables. Which reporting makes Moss look better?
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