A zero value for the shadow price of a constraint indicates that the reduction or increase in the value of the right-hand-side value of that constraint will not impact the objective function

a. True
b. False

A

Business

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Neutral Paints Company uses the direct method for preparing its statement of cash flow

Neutral reports the following information regarding 2017: From the income statement: Sales Revenues, $266,000 Cost of Goods Sold, $215,000 Operating Expenses, $37,000 From the balance sheet: Beginning Balance Ending Balance Accounts Receivable $14,500 $18,000 Merchandise Inventory 23,800 17,800 Accounts Payable 6,200 13,700 Accrued Liabilities 4,400 1,500 What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only, and Accrued Liabilities relate to operating expenses.) A) $39,900 B) $37,000 C) $35,500 D) $41,400

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