Question

Q Financial Management Esc x | Q Finance 301-Quiz, Flash. | t html Saved Quiz #1 Fin 361 Based only on the following information for Thrice Corp., did cash go up or down? By how much? Classify each event as a source or use of cash. 15 Decrease in inventory Decrease in accounts payable Increase in notes payable Increase in accounts receivable $450 170 580 280 Multiple Choice Cash decreased by $580 Cash increased by $580 Cash increased by $1,140 Cash decreased by $1,480 Cash Increased by $920 O Type here to search Prev 15 of 20 Next

Answer 1

Answer : (b) Cash increased by $580 is the correct.

= Decrease in inventory - Decrease in accounts Payable + Increase in notes payable - Increase in accounts receivable

   $450 - $170 + $580 + $280 = $580

Therefore cash goes up by $580.