The balance sheet for Blineberry Corporation follows:

Operating income during the period was $18,000,while cash dividends paid were $17,400.The total use of cash at Blineberry Corporation during the year was

Question

The balance sheet for Blineberry Corporation follows:

Operating income during the period was $18,000,while cash dividends paid were $17,400.The total use of cash at Blineberry Corporation during the year was

Quizplus · Accepted Answer

The total use of cash can be calculated using the formula: Change in cash = Operating income - Dividends paid - Change in non-cash current assets + Change in non-debt current liabilities.

Using the information from the balance sheet: 
Change in cash = $12,000 - $17,400 - ($4,650 - $4,500) + ($10,000 - $3,000) 
Change in cash = $12,000 - $17,400 - $150 + $7,000 
Change in cash = -$39,850

This means that Blineberry Corporation used $39,850 of cash during the year. Therefore, the answer is D.

The Balance Sheet for Blineberry Corporation Follows