Estimate the firm's net source and use of cash from the following changes in assets and...

Estimate the firm's net source and use of cash from the following changes in assets and liabilities:1) Inventories decreases by $55; 2) Accounts Receivable increases by $15; 3)Accounts Payable increases by $30; 4)Short term debt decreases by $8

		$32 net use of cash
		$52 net use of cash
		$62 net source of cash
		$52 net source of cash
		$32 net source of cash

Expert Solution

Decrease in inventory	Source of cash	$55
Increase in AR	Use of cash	(15)
Increase in AP	Source of cash	30
Decrease in short term debt	Use of Cash	(8)
		Net source of cash=$62

NOTE:Decrease in current liabilities is an outflow of cash and vice versa.
Decrease in current assets is an inflow of cash and vice-versa.

jeff jeffy answered 2 years ago

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