2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
2. Based only on the following information for Murdoch Pty Ltd, did cash go up or down? By how much? Classify each event as a source or a use of cash. [8 marks]
Increase in accounts payable $25,000
Increase in inventory $15,000
Decrease in accounts receivable $27,000
Decrease in borrowings $65,000
As the events have been classified now lets calculate the increase or decrease in cash
Increase in accounts payable = $25,000 (source)
Increase in inventory = -$15,000 (use)
Decrease in accounts receivable = $27,000 (source)
Decrease in borrowings = -$65,000 (use)
Total increase or decrease in cash = 25000 + 27000 - 15000 - 65000 = -$28,000
The minus sign indicates the cash has gone down by $28,000
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