Complete the statement of sources and uses of cash from the following entries: N
ID: 2773819 • Letter: C
Question
Complete the statement of sources and uses of cash from the following entries: Net income $3,300 Dividends 700 Additions to inventory 300 Additions to receivables 330 Depreciation 270 Reduction in payables 730 Net issuance of long-term debt 480 Sale of fixed assets 240 Sources Issued long-term debt $_____ Sale of fixed assets $_____ Cash from operations: Net income $_____ Depreciation $_____ Total sources $_____ Uses Additions to inventory $_____ Increase in accounts receivable $_____ Decrease in accounts payable $_____ Payment of dividends $_____ Total uses $_____ Complete the statement of sources and uses of cash from the following entries:Explanation / Answer
Sources
Issued long-term debt
$480
Sale of fixed assets
$240
Cash from operations:
Net income
$3,300
Depreciation
$270
Total sources
$4,290
Uses
Additions to inventory ( Used Cash for buying additional inventory – Treated as expense)
$300
Increase in accounts receivable ( Used cash for improving the accounts receivable – Treated as expense)
$330
Decrease in accounts payable( Used cash for decreasing the accounts receivable – Treated as expense)
$730
Payment of dividends - Expense
$700
Total uses
$2,060
Therefore Cash balance is 4,290 -2,060 = $2,230
Sources
Issued long-term debt
$480
Sale of fixed assets
$240
Cash from operations:
Net income
$3,300
Depreciation
$270
Total sources
$4,290
Uses
Additions to inventory ( Used Cash for buying additional inventory – Treated as expense)
$300
Increase in accounts receivable ( Used cash for improving the accounts receivable – Treated as expense)
$330
Decrease in accounts payable( Used cash for decreasing the accounts receivable – Treated as expense)
$730
Payment of dividends - Expense
$700
Total uses
$2,060
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