Question

2016 Current Assets	2017	Sources	Uses
Cash                                             30,000	40,000
Accounts Receivable                   190,000	225,000
Inventory                                       30,000	35,000
TOTAL CURRENT ASSETS                250,000	300,000
Fixed Assets Property and Equipment                     1,400,000	1,500,000
Other Assets                               200,000	100,000
Total Assets                   1,850,000	1,900,000
Current Liabilities Accounts Payable                        140,000	135,000
Rent Payable                                 50,000	50,000
Wages Payable                                10,000	15,000
Notes Payable                                 1,000,000	1,000,000
Total Liabilities                1,200,000	1,200,000
Owner’s Equity                              650,000	700,000
Total Sources and Uses of Funds

Complete the above Statement and Uses of Funds for Chicago Inn. Remember the total for sources must be equal to the total uses. If it is not equal, take the difference and divide by two. This may indicate where the error was made.

Answer 1

Current Assets	2016	2017	Sources	Uses
Cash	30,000	40,000		(10,000)
Accounts receivable	1,90,000	2,25,000		(35,000)
Inventory	30,000	35,000		(5,000)
Total Current Assets	2,50,000	3,00,000
Fixed Assets
Property and Equipment	14,00,000	15,00,000		(1,00,000)
Other Assets	2,00,000	1,00,000	1,00,000
Total Assets	18,50,000	19,00,000
Current Liabilities
Accounts Payable	1,40,000	1,35,000		(5,000)
Rent Payable	50,000	50,000
Wages Payable	10,000	15,000	5,000
Notes Payable	10,00,000	10,00,000
Total Liabilities	12,00,000	12,00,000
Owner's Equity	6,50,000	7,00,000	50,000
Total Equity and Liabilities	18,50,000	19,00,000	1,55,000	(1,55,000)

Increase in current assets is a DECREASE or a USE.
Example, Accounts Receivables- Increase in receivables means payments have not been received but we have sold the goods. This means funds have been used are stuck.

Increase in current liabilities is an INCREASE or a SOURCE.
Example, Wages Payable- Increase in this balance means we have not made a payment and have funds for use instead.