Answer:
$7,700 increase
Explanation:
We can determine the change in Wolverine's cash balance by deducting the cash disbursement and operating expenses from the cash receipts.\
Change in cash balance = Cash receipts - Cash disbursement - Operating expense
Change in cash balance = $48,000 - $33,800 -$6,500
Change in cash balance = $7,700
WORKING:
<u>Cash Receipts</u>
Sales 
February ( 59,000 x 45%)            $26,550
January ( 39,000 x 55%)              $21,450  
Total                                               $48,000
<u>Cash disbursement</u>
Purchases
February ( 44,000 x 15%)            $6,600
January ( 32,000 x 85%)             $27,200  
Total                                              $33,800
<u>Operating expenses </u>
Incurred                                        $9,400
Depreciation                                ($2,900)
Net                                                 $6,500