Calculate the change in cash given the following information: $$\begin{array} {| l | r| }
\hline \text { Increase in AR } & 5,000 \
\hline \text { Decrease in Inventory } & 25,000 \
\hline \text { Decrease in Accounts Payable } & 10,000 \
\hline \text { Increase in Taxes Payable } & 2,500 \
\hline \text { Issued Long Term Debt } & 300,000 \
\hline \text { Issued Common Shares } & 250,000 \
\hline \text { Issued Dividends } & 60,000 \
\hline
\end{array}$$

Question

Calculate the change in cash given the following information: $$\begin{array} {| l | r| } 
\hline \text { Increase in AR } & 5,000 \
\hline \text { Decrease in Inventory } & 25,000 \
\hline \text { Decrease in Accounts Payable } & 10,000 \
\hline \text { Increase in Taxes Payable } & 2,500 \
\hline \text { Issued Long Term Debt } & 300,000 \
\hline \text { Issued Common Shares } & 250,000 \
\hline \text { Issued Dividends } & 60,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The change in cash is calculated by considering the effects of changes in working capital, financing, and investing activities. Increase in AR (accounts receivable) decreases cash (-5,000), decrease in inventory increases cash (+25,000), decrease in accounts payable decreases cash (-10,000), increase in taxes payable increases cash (+2,500), issuing long-term debt increases cash (+300,000), issuing common shares increases cash (+250,000), and issuing dividends decreases cash (-60,000). Adding these together: -5,000 + 25,000 - 10,000 + 2,500 + 300,000 + 250,000 - 60,000 = $502,500.

Calculate the Change in Cash Given the Following Information A)$532,500 B)$522,500 C)$512,500 D)$502,500

Calculate the Change in Cash Given the Following Information A)$532,500
B)$522,500
C)$512,500
D)$502,500