In: Accounting
Indicate whether each of the following is a source of cash or use of cash
Depreciation expense
The sale of production equipment at the end of its useful life
Dividends paid to shareholders
An increase in account payable
An increase in inventory
The sale of securities held for investment
The repayment of borrowed capital
The amortization of intangibles
An increase in the Deferred Taxes account
Depreciation expense | Neither a source of cash Nor a use of cash | |||
The sale of production equipment at the end of its useful life |
Source of Cash | |||
Dividend paid to shareholders | Use of Cash | |||
Increase in Accounts Payable | Source of Cash | |||
Increase in Inventory | Use of Cash | |||
Sale of securities held for Investment | Source of Cash | |||
Repayment of borrowed capital | Use of Cash | |||
Amortization of Intangibles | Neither a source of cash Nor a use of cash | |||
Increase in Deferred tax account(Note) | Source of Cash/Use of cash | |||
Note: | ||||
If there is an increase in Deferred tax liability or decrease in Deferred tax assets then it can be called as Source of cash | ||||
If there is an decrease in Deferred tax liability or increase in Deferred tax assets then it can be called as use of cash | ||||