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

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 2 years ago

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