Question

In: Finance

Increase in accounts payable Increase in accruals Decrease in accounts receivable Increase in Inventory Increase in...

Increase in accounts payable

Increase in accruals

Decrease in accounts receivable

Increase in Inventory Increase in Property, Plant and Equipment

Decrease in Long-term Debt

Increase in Net Income

A. Use of Cash

B. Source of Cash

Solutions

Expert Solution

1. Increase in accounts payable = It is a source of cash. Increase in accounts payable means we have borrowed something for which our payable liabilities have increased as of now. Later on when the payables will be paid, it will be use of cash.

2. Increase in accruals: It is a use of cash. Increase in accruals means we have increased our outstanding receivables for which we have made the payments. These will be received in future. When we will receive them, they will be our source of cash.

3.Decrease in accounts receivables: It is a source of cash. Decrease in accounts receivables means we have received cash out of accounts receivables from our debtors. And now the receivables balance is decreased.

4. Increase in inventory : It is a use of cash. Increase in inventory means we have purchased some inventory. When inventory is purchased, it reduces cash from where it has been purchased.

5. Increase in property, plant and equipment: It is a use of cash. Increase in property plant and equipment means we have purchased some property plant and equipment. When property plant and equipment is purchased,it reduces cash from where it has been purchased.

6. Decrease in long term debt: It is a use of cash. Decrease in long term debt means we have paid out some amount of long term debt, so it has been decreased. So, it is a use of cash.

7. Increase in net income: Increase in net income is source of cash. Net income increase will result in more revenues / cash coming in.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

cash collections of accounts receivable will increase ____ and decrease _____ 1) accounts payable , accounts...
cash collections of accounts receivable will increase ____ and decrease _____ 1) accounts payable , accounts receivable 2) accounts receivable, accounts payable 3) cash, accounts receivable 4) cast, accounts payable when developring cost functions , which of the following is false 1) the cost funtion must be believable 2) the cost function does not have to be reliable 3) personal observations of cost and activities provide the best evidence of a plausible relationship between a cost and its cost driver...
Prepare cash flow statement based on information given Decrease in accounts receivable                        $20 Increase in inventory
Prepare cash flow statement based on information given Decrease in accounts receivable                        $20 Increase in inventory                                        10 Operating income                                              200 Interest expense                                                 20 Decrease in accounts payable                            20 Dividend                                                            20 Decrease in common stock                                 30 Increase in net fixed asset                                  20 Depreciation                                                       15 Income tax                                                         20 Beginning cash                                                  100
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750...
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 428,048.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 54,731.00 Interest expense 40,500 41,017.00 Inventories 279,000 288,000 Long-term debt 339,670.00 401,877.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 161,905.00 Retained earnings 306,000 342,000 Sales 639,000 850,323.00 Taxes 24,750 48,686.00 What is...
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750...
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 430,741.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 54,943.00 Interest expense 40,500 41,875.00 Inventories 279,000 288,000 Long-term debt 339,876.00 398,606.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 162,524.00 Retained earnings 306,000 342,000 Sales 639,000 845,964.00 Taxes 24,750 47,204.00 What is...
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750...
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 430,741.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 54,943.00 Interest expense 40,500 41,875.00 Inventories 279,000 288,000 Long-term debt 339,876.00 398,606.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 162,524.00 Retained earnings 306,000 342,000 Sales 639,000 845,964.00 Taxes 24,750 47,204.00 What is...
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750...
Category Prior Year Current Year Accounts payable ??? ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000 541,650 Cash 17,500 47,500 Common Stock 94,000 105,000 COGS 328,500 428,545.00 Current portion long-term debt 33,750 35,000 Depreciation expense 54,000 55,690.00 Interest expense 40,500 42,213.00 Inventories 279,000 288,000 Long-term debt 338,956.00 400,900.00 Net fixed assets 946,535 999,000 Notes payable 148,500 162,000 Operating expenses (excl. depr.) 126,000 161,496.00 Retained earnings 306,000 342,000 Sales 639,000 852,779.00 Taxes 24,750 47,481.00 1. What...
With an explanation, please! Accounts payable 3,154.00 5,910.00 Accounts receivable 6,954.00 9,092.00 Accruals 5,609.00 6,027.00 Additional...
With an explanation, please! Accounts payable 3,154.00 5,910.00 Accounts receivable 6,954.00 9,092.00 Accruals 5,609.00 6,027.00 Additional paid in capital 19,742.00 13,180.00 Cash ??? ??? Common Stock 2,850 2,850 COGS 22,063.00 18,714.00 Current portion long-term debt 500 500 Depreciation expense 998.00 950.00 Interest expense 1,270.00 1,169.00 Inventories 3,060.00 6,731.00 Long-term debt 16,843.00 22,507.00 Net fixed assets 75,951.00 74,022.00 Notes payable 4,053.00 6,543.00 Operating expenses (excl. depr.) 19,950 20,000 Retained earnings 35,601.00 34,830.00 Sales 46,360 45,756.00 Taxes 350 920 What is the...
accounts payable and accounts receivable
What is the difference between accounts payable and accounts receivable?
Which one of the following is a source of cash? increase in accounts receivable decrease in...
Which one of the following is a source of cash? increase in accounts receivable decrease in notes payable decrease in common stock decrease in accounts payable increase in inventory all of the above none of the above
Category 2014 2015 Accounts payable 16,200 ???? Accounts receivable 48,600 44,500 Accruals 24,300 16,200 Cash 81,000...
Category 2014 2015 Accounts payable 16,200 ???? Accounts receivable 48,600 44,500 Accruals 24,300 16,200 Cash 81,000 98,000 Common Stock 64,800 81,000 COGS 56,700 64,800 Depreciation expense 0 4,300 Gross fixed assets 121,500 ???? Interest expense 6,400 8,100 Inventories 40,500 60,800 Long-term debt 81,000 89,100 Net fixed assets 101,500 121,500 Notes payable 44,800 37,200 Operating expenses (excl. depr.) 12,100 16,200 Retained earnings 40,500 60,800 Sales 105,300 121,500 Taxes 4,860 6,480 Solve: Please show me the steps The quick ratio in 2015...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT