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А B D E F G H K M 1 21). 3 Computation of Cash received for each month W.N. - Calculation September October November December August September October November December 500 $ 400 $ 400 $ 200 $ 200 4 $ $ 200 $ 200 $ 100 $ 100 (400*.50) (400*.50) (200*.50) (200*.50) 5 Sales Cash received for present month's sale (Current month Sale *50%) Cash received for previous month's sale (Previous month Sale *50%) Total Cash Received $ 250 $ 200 $ 200 $ 100 (500*.50) (400*.50) (400*.50) (200*.50) 6 7 $ 450 $ 400$ 300 $ 200 8 9 2). 10 Source of cash are those items from which cash is generated in the business, and use of cash are those items where cash are utilised in a business. 11 Item Use/Source Explanation Inventories go up 12 Use of Cash Cash has been blocked in the inventories. Trade Payable go down Use of Cash Since payment has been made to Accounts Payables. 13 Accounts receivables go up Use of Cash Since, Accounts receivables has not made payment and therefore, cash in form of working capital has been utilised there. 14 15 16