Question

Stimulus Industries Inc. has 2017 total current assets of​ $14,871,000. Last year the total current assets were equal to​ $12,462,000. The change in total current assets is a​ ________ of cash in the amount of​ ________.

Answer 1

Answer:

use; $2,409,000

Explanation:

Given that,

Total current assets in 2017 = $14,871,000

Total current assets in the last year = $12,462,000

Therefore, there is an increase in the total current assets which indicates that there is a use of cash.

Hence, the amount of cash used is calculated as follows:

= Total current assets in 2017 - Total current assets in the last year

= $14,871,000 - $12,462,000

= $2,409,000