Complete the statement of sources and uses of cash from the following entries:     Net income$3,500 Dividends 900 Additions to inventory 320 Additions to receivables 350 Depreciation 290 Reduction in payables 750 Net issuance of long-term debt 500 Sale of fixed assets 260  Sources                                                                           ___________Additions to inventory                                              ____________Decrease in Accounts PayableDepreciationIncrease in Accounts receivable Cash from operationsAdditions to inventory                                               ___________Decrease in accounts payable                                 ___________DepreciationIncrease in accounts receiveableTotal SourcesUsesAdditions to inventory                                                     ___________Decrease in accounts payable                                       ___________Depreciation                                                                    ____________Increases in accounts receiveable                               _____________Total Uses                                                                       ____________

Question
Asked Feb 25, 2020
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Complete the statement of sources and uses of cash from the following entries:

 

       
Net income $ 3,500  
Dividends   900  
Additions to inventory   320  
Additions to receivables   350  
Depreciation   290  
Reduction in payables   750  
Net issuance of long-term debt   500  
Sale of fixed assets   260  
 

Sources                                                                           ___________

Additions to inventory                                              ____________

Decrease in Accounts Payable

Depreciation

Increase in Accounts receivable

 

Cash from operations

Additions to inventory                                               ___________

Decrease in accounts payable                                 ___________

Depreciation

Increase in accounts receiveable

Total Sources

Uses

Additions to inventory                                                     ___________

Decrease in accounts payable                                       ___________

Depreciation                                                                    ____________

Increases in accounts receiveable                               _____________

Total Uses                                                                       ____________

 

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Expert Answer

Step 1

Sources of cash will comprise of those items that release / generate cash for the organization. Uses of cash will comprise of those items that use (eat up) the cash of the organization.

In this case, the sources of cash will be:

  • Issuance of long-term debt
  • Sale of fixed assets
  • ...

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