Calculate the cash balance given the following information: $$\begin{array} {| l | r | }
\hline \text { Decrease in AR } & 30,000 \
\hline \text { Increase in Inventory } & 70,000 \
\hline \text { Increase in Accounts Payable } & 45,000 \
\hline \text { Decrease in Taxes Payable } & 8,000 \
\hline \text { Repaid Long Term Debt } & 90,000 \
\hline \text { Issued Common Shares } & 160,000 \
\hline \text { Issued Dividends } & 25,000 \
\hline
\end{array}$$

Question

Calculate the cash balance given the following information: $$\begin{array} {| l | r | } 
\hline \text { Decrease in AR } & 30,000 \
\hline \text { Increase in Inventory } & 70,000 \
\hline \text { Increase in Accounts Payable } & 45,000 \
\hline \text { Decrease in Taxes Payable } & 8,000 \
\hline \text { Repaid Long Term Debt } & 90,000 \
\hline \text { Issued Common Shares } & 160,000 \
\hline \text { Issued Dividends } & 25,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

To calculate the cash balance, consider the impact of each item on cash flow: - Decrease in Accounts Receivable (AR) increases cash by $30,000. - Increase in Inventory decreases cash by $70,000. - Increase in Accounts Payable increases cash by $45,000. - Decrease in Taxes Payable decreases cash by $8,000. - Repaying Long Term Debt decreases cash by $90,000. - Issuing Common Shares increases cash by $160,000. - Issuing Dividends decreases cash by $25,000. Adding these impacts together: $30,000 - $70,000 + $45,000 - $8,000 - $90,000 + $160,000 - $25,000 = $42,000.

Calculate the Cash Balance Given the Following Information A)$48,000 B)$45,000 C)$42,000 D)$39,000

Calculate the Cash Balance Given the Following Information A)$48,000
B)$45,000
C)$42,000
D)$39,000