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Calculate the net impact on cash given the following information: decrease in accounts receivable= $30; decrease...

Calculate the net impact on cash given the following information: decrease in accounts receivable= $30; decrease in inventory= $45; net fixed asset Disposals= $75; decrease in accounts payable= $27; increase in notes payable= $30; increase in long-term debt= $105; decrease in retained earnings= $18; decrease in common stock= $600.

a. $470 net addition to cash

b. $120 net deduction from cash

c. $360 net addition to cash

d. $120 net addition to cash

e. $360 net deduction from cash

Solutions

Expert Solution

Answer :

e. $360 net deduction from cash

Transaction Cash flow nature Cash
decrease in accounts receivable= $30; inflow 30
decrease in inventory= $45; inflow 45
net fixed asset Disposals= $75 inflow 75
decrease in accounts payable= $27 outflow -27
increase in notes payable= $30; inflow 30
increase in long-term debt= $105 inflow 105
decrease in retained earnings= $18 outflow -18
decrease in common stock= $600. outflow -600
Net impact on cash -360

jeff jeffy answered 3 years ago
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