Question

Below are the most recent balance sheets for Country Kettles, Inc. Excluding accumulated depreciation, determine whether each item is a source or a use of cash, and the amount (Input all amounts as positive values):

COUNTRY KETTLES, INC. Balance Sheet December 31 2013 2014

Assets

Cash $ 31,600 $ 30,810

Accounts receivable 71,100 74,320

Inventories 62,000 64,375

Property, plant, and equipment 159,000 170,200

Less: Accumulated depreciation 46,880 51,100

Total assets $ 276,820 $ 288,605

Liabilities and Equity

Accounts payable $ 46,100 $ 48,310

Accrued expenses 7,480 6,580

Long-term debt 26,800 29,800

Common stock 28,000 33,200

Accumulated retained earnings $ 168,440 $ 170,715

Total liabilities and equity $ 276,820 $ 288,605

Item Source/Use Amount

Cash $

Accounts receivable $

Inventories $

Property, plant, and equipment $

Accounts payable $

Accrued expenses $

Long-term debt $

Common stock $

Accumulated retained earnings $

Answer 1

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Country Kettles, Inc.
Workings	2014 $	2013 $	Change	Nature
Cash	30,810.00	31,600.00	(790.00)	Decrease
Accounts receivable	74,320.00	71,100.00	3,220.00	Increase
Inventories	64,375.00	62,000.00	2,375.00	Increase
Property, plant, and equipment	170,200.00	159,000.00	11,200.00	Increase
Accounts payable	48,310.00	46,100.00	2,210.00	Increase
Accrued expenses	6,580.00	7,480.00	(900.00)	Decrease
Long-term debt	29,800.00	26,800.00	3,000.00	Increase
Common stock	33,200.00	28,000.00	5,200.00	Increase
Accumulated retained earnings	170,715.00	168,440.00	2,275.00	Increase
Item	Source/Use	2013	Reason
Cash	Use	790.00	Because cash balance has decreased it mean cash is used in the business.
Accounts receivable	Use	3,220.00	Because Accounts receivable has increased it mean cash is stuck in Accounts receivable.
Inventories	Use	2,375.00	Because inventories has increased it mean cash is stuck in inventories.
Property, plant, and equipment	Use	11,200.00	Because Property, plant, and equipment has increased it mean cash is stuck in Property, plant, and equipment.
Accounts payable	Source	2,210.00	Because Accounts payable has increased it means it is not paid during the year so cash balance has increased.
Accrued expenses	Use	900.00	Because Accrued expenses has decreased it means it is paid during the year so cash balance decreased.
Long-term debt	Source	3,000.00	Because Long-term debt has increased it means more debt is taken during the year so cash balance has increased.
Common stock	Source	5,200.00	Because Common stock has increased it means more stock has issued during the year so cash balance has increased.
Accumulated retained earnings	Source	2,275.00	Because Accumulated retained earnings has increased it means profit is retained in the business and not distributed so cash balance has increased.