Question

A company reported total assets at the end of the previous year of $95,000; including cash of $35,000, accounts receivable of $20,000, and inventory of $40,000. It reported total assets at the end of the current year of $110,000; including cash of $44,000; accounts receivable of $29,000, and inventory of $37,000. Compute the net increase or decrease in cash for the current year.

Answer 1

Answer:

there is $9,000 increase in cash

Explanation:

The computation of the increase or decrease in cash is as follows;

In the previous year, the cash balance is $35,000

In the current year, the cash balance is $44,000

So the differenceis

= $44,000 - $35,000

= $9,000

This $9,000 represent an increase in cash

So, there is $9,000 increase in cash