Question

Net income $ 3,000 Dividends 900 Additions to inventory 270 Additions to receivables 300 Depreciation 240 Reduction in payables 700 Net issuance of long-term debt 450 Sale of fixed assets 210

Answer 1

Solution:
	Statement of sources and uses of cash
	Sources
	Net issuance of long-term debt	450
	Sale of fixed assets	210
	Cash from operations:
	Net income	3000
	Depreciation	240
	Total sources	3900
	Uses
	Additions to inventory	270
	Additions to receivables	300
	Reduction in payables	700
	Dividends	900
	Total uses	2170
Notes:	Sources are those due to which cash is incoming to the organization & uses are where cash blocked or cash outflows.
Please feel free to ask if anything about above solution in comment section of the question.