Kassebaum Corporation's comparative balance sheet appears below: The company's net income (loss) for the year was $13,000 and its cash dividends were $1,000.
-The total dollar amount of all of the items that would be classified as uses when compiling a simplified statement of cash flows is:
A) $42,000
B) $35,000
C) $6,000
D) $36,000

Question

Kassebaum Corporation's comparative balance sheet appears below:  The company's net income (loss) for the year was $13,000 and its cash dividends were $1,000.
-The total dollar amount of all of the items that would be classified as uses when compiling a simplified statement of cash flows is:
A) $42,000 
B) $35,000 
C) $6,000 
D) $36,000

Quizplus · Accepted Answer

Uses of cash include an increase in accounts receivable of $4,000, an increase in inventory of $15,000, the purchase of equipment for $20,000, and payment of cash dividends of $1,000, resulting in a total of $40,000. However, there was also a decrease in accounts payable of $4,000, which would be a source of cash, resulting in a net use of cash of $36,000.

Kassebaum Corporation's Comparative Balance Sheet Appears Below: the Company's