Wolverine,Inc.began operations on January 1 of the current year with a $12,000 cash balance.Forty percent of sales are collected in the month of sale;60% are collected in the month following sale.Similarly,20% of purchases are paid in the month of purchase,and 80% are paid in the month following purchase.The following data apply to January and February:
If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,500,determine the change in Wolverine's cash balance during February.

Question

Wolverine,Inc.began operations on January 1 of the current year with a $12,000 cash balance.Forty percent of sales are collected in the month of sale;60% are collected in the month following sale.Similarly,20% of purchases are paid in the month of purchase,and 80% are paid in the month following purchase.The following data apply to January and February: 
If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,500,determine the change in Wolverine's cash balance during February.

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The Answer of Wolverine,Inc.began operations on January 1 of the current year with a $12,000 cash balance.Forty percent of sales are collected in the month of sale;60% are collected in the month following sale.Similarly,20% of purchases are paid in the month of purchase,and 80% are paid in the month following purchase.The following data apply to January and February: 
If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,500,determine the change in Wolverine's cash balance during February.