Question 5 a Given the following which are reflective of \"uses \" of cash? a.)

Question

Question 5 a

Given the following which are reflective of "uses" of cash?

a.) Accounts Receivables (2008) $4,600 Accounts Receivables (2009) $5,600

b.) Accounts Payable (2008) $7,700 Accounts Payable (2009) $8,900

c.) Inventory (2008) $4,500 Inventory (2009) $6.700

d.) Fixed Assets (2008) $5,500 Fixed Assets (2009) $7,900

b,c,d

a.,c,d.

a,b,c

a,b

Question 5b

Please view the chapter and see the Belfry Income Statement/Balance Sheet.

The amount of depreciation from operations is $500.00 and it represents a "use"of cash for Belfry because it is deducted as an expense in the income statement.

True

False

Question 5c

Please click here to view the Belfry Income Statement/Balance Sheet.

Reminder: Pause button at bottom of presentation.

Long Term Debt increased from $5,000 to $6,200 which means that Belfry will reflect a "source" of funds recorded in theFINANCING ACTIVITIES section of the Statement of Cash Flows.

FALSE

TRUE

Question 5d

Please click here to view the Belfry Balance Sheet.

Reminder: Pause button at bottom of that presentation.

It appears that Belfry experienced a "source" of funds of $100 resulting from the collection of Accounts Receivables.

True

False

b,c,d

a.,c,d.

Explanation / Answer

5a The reflectives of uses of cash are, Accounts Receivable, accounts Payable, Inventories. Theses can be readibily convertible into cash. Hence the correct option is a,b,c 5b FALSE The depreciation is not a cash expenses 5c TRUE The long term debt is a source of funds In the cash flow statement, it is recorded under cash flow from financing Activities

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