Question

Complete the statement of sources and uses of cash from the following entries:

Net income	$	2,400
Dividends		700
Additions to inventory		210
Additions to receivables		240
Depreciation		180
Reduction in payables		640
Net issuance of long-term debt		390
Sale of fixed assets		150

Answer 1

Answer:

Sources

Sources	Amount ($)
Issued long term debt	390.00
Sale of fixed assets	150.00
Cash from Operations:
Net Income	2,400.00
Depreciation	180.00
TOTAL SOURCES	3,120.00

Uses

Uses	Amount ($)
Additions to inventory	210.00
Increase in accounts receivables	240.00
Decrease in accounts payable	640.00
Payment of dividends	700.00
TOTAL USES	1,790.00