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What is the overall change in cash resulting from: $300 increase in inventories, $150 increase in...

What is the overall change in cash resulting from: $300 increase in inventories, $150 increase in accounts payable, $100 decrease in accounts receivable, $80 decrease in other current assets, $130 decrease in other current liabilities? Options:

a) 120

b)100

c) -100

d) -120

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Answer #1

Increase in inventories = $300

Increase in accounts payable = $150

Decrease in accounts receivable = $100

Decrease in other assets = $80

Decrease in other current liabilities = $130

Overall change in cash = (Increase in inventories) + Increase in accounts payable + Decrease in accounts receivable + Decrease in other assets - Decrease in other current liabilities

= -$300 +$150 + $100 + $80 -$130

= -$100

Therefore, overall change in cash is -100

Option c is correct

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