Complete the statement of sources and uses of cash from the following entries: N

Question

Complete the statement of sources and uses of cash from the following entries: Net income Dividends Additions to inventory Additions to receivables Depreciation Reduction in payables Net issuance of long-term debt Sale of fixed assets $3,100 500 280 310 250 710 468 220 Sources Issued long-term debt Sale of fixed assets Cash from operations Net income Depreciation Total sources 0 Uses Additions to inventory Increase in accounts receivable Decrease in accounts payable Payment of dividends Total uses

Explanation / Answer

1) Preparation of statement of sources and uses of cash flow from the given entries :

Particulars Amount($) Sources : Issue of long term debt 460 Sale of Fixed Assets 220 Cash from Operations : Net income 3,100 Depreciation 250 Total Sources 4,030 Uses : Additions to inventory 280 Increase in Accounts receivable 310 Decrease in Accounts Payable 710 Payment of dividend 500 Total uses $1,800

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