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# Calculating overall change in cash

Calculate overall change in cash Please review the steps I used in preparing the attached problem.

"Use the following information to determine your client's overal change
in cash." Accounts Receivable (\$5,000)
Supplies \$1,000
Inventory \$3,000
Prepaid Rent (\$2,000)
Fixed Assets \$18,000
Accumulated Depreciation \$4,000
Accounts Payable \$3,000
Accrued Expenses (\$1,000)
Notes Payable \$5,000
Bonds Payable (\$2,000)
Common Stock \$1,000
Net Income \$17,000
Dividends Paid \$3,000

CASH FROM OPERATING ACTIVITIES

Net income for the year 2008 Step 1 \$17,000
Prepaid Rent (\$2,000)

office supply decreased \$1,000
increase in accrrued expenses (\$1,000)

Step 2 (\$2,000)

Less:
increase in accounts receivable (\$5,000)
decrease in accounts payable \$3,000
Accumulated Depreciation \$4,000
inventory decreased \$3,000

Step 3 \$5,000

CASH FROM OPERATIONS: \$10,000

CASH FROM FINANCING ACTIVITIES
purchase of fixed assets (\$18,000)

CASH FLOW FROM INVESTING ACTIVITIES
issue of shares \$1,000
repayment of bonds \$2,000
Notes Payable \$5,000
DIVIDEND PAID \$3,000
\$11,000
CHANGES IN OVERALL CASH \$3,000

#### Solution Summary

The expert calculates the overall change in cash.

\$2.19