Information regarding the Martin Company in 2010 appears below: $\begin{array}{ll}
\text { Net income } & \$ 140,000 \
\text { Dividends paid } & 20,000 \
\text { Decrease in inventory } & 15,000\
\text { Increase in accounts payable } & 30,000 \
\text { Proceeds from issue of common stock } & 70,000 \
\text { Depreciation expense } & 10,000
\end{array}$ What was Martin's net increase in cash?
A)$190, 000
B)$225, 000
C)$245, 000
D)$255, 000

Question

Quizplus · Accepted Answer

The net increase in cash is calculated by adding net income, depreciation, decrease in inventory, increase in accounts payable, and proceeds from the issue of common stock, then subtracting dividends paid: $140,000 + $10,000 + $15,000 + $30,000 + $70,000 - $20,000 = $245,000.

Information Regarding the Martin Company in 2010 Appears Below What Was Martin's Net Increase in Cash? A)$190, 000 B)$225

Information Regarding the Martin Company in 2010 Appears Below What Was Martin's Net Increase in Cash?
A)$190, 000
B)$225