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

ID: 2793635 • Letter: C

Question

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

Sources

Issued Long-term debt

Sale of fixed asset

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

Net income $ 2,500 Dividends 800 Additions to inventory 220 Additions to receivables 250 Depreciation 190 Reduction in payables 650 Net issuance of long-term debt 400 Sale of fixed assets 160

Sources

Issued Long-term debt

Sale of fixed asset

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

Explanation / Answer

Sources Issued long term debt 400 Sale of fixed asset 160 Cash from operations Net income 2500 Depreciation 190 Total sources 3250 Uses Addition to inventory 220 Increase in AR 250 Decrease in AO 650 Payment of dividends 800 Total uses $1920

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