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MAXImum [283]
3 years ago
6

What is the overall change in cash resulting from: $300 increase in inventories, $150 increase in accounts payable, $120 decreas

e in accounts receivable, $60 decrease in other current assets, $150 decrease in other current liabilities?
(A) -$120
(B) -$240
(C) $180
(D) $120
Business
1 answer:
yan [13]3 years ago
5 0

Answer:

(A). - $ 120

Explanation:

The changes to cash are from the following rules

Increase in assets and decrease in liabilities is a decrease in cash

Decrease in assets and increase in liabilities is and increase in cash

Using the data in the question,

                                                                                         Cash Movement

increase in inventories $ 300                                         ( $ 300)

Increase in accounts payable  $ 150                                 $ 150

Decrease in accounts receivable $ 120                             $ 120

Decrease in other current assets $ 60                               $ 60

Decrease in other current liabilities $ 150                       <u>($ 150)</u>        

Net movement in Cash                                                    $ (120)                                      

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<h2>Current Ratio:</h2>

Camero :                                                                        GTO

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