Respuesta :
Answer:
The cash balance would increase by $335
Explanation:
The given question shows the operating activities of the cash flow statement which deals in increasing and decrease of current assets and liabilities.
1. Decrease in inventory $ 630 increase the cash balance.
2. Decrease in accounts payable $265 decrease the cash balance. As payment would be made regarding purchase
3. Increase in notes payable $250 increase the cash balance because cash is received.
4. Increase in accounts receivable $280 decrease the cash balance because there is not any surety of cash.
After considering these cash effects, we get to know whether cash would be increased or decreased by applying the equation which is shown below:
Cash balance = Decrease in inventory + Increase in notes payable - Decrease in accounts payable - Increase in accounts receivable
= $ 630 + $250 - $265 - $280
= $335
These effects show the source and use of cash funds.
Thus, the cash balance would increase by $335.
Cash balance refers to the amount of money which is hold by the bank on a specific period of time.
The amount of cash balance would go up by $335 during the year.
What is cash balance?
A cash balance shows that a company has cash on hand and can use that cash however it wishes. Cash includes more than just the physical conventional bills and coins.
Computation of cash balance:
[tex]\text{Decrease in Inventory} + \text{Increase in notes payable} - \text{Decrease in AP} - \text{Increase in AR}\\\\\\\text{Cash Balance} = \$ 630 + \$250 - \$265 - \$280\\\\\\\text{Cash Balance} =\$335[/tex]
Where,
AP = Accounts Receivable, and
AR = Accounts Receivable.
In the above case, The increasing and decreasing items, are:
1. Decrease in inventory by $630, increase the cash balance.
2. Decrease in accounts payable by $265 also decrease the cash balance.
3. Increase in notes payable by $250 also increase the cash balance because cash is obtained.
4. Increase in accounts receivable by $280, decrease the cash balance because there is not any sure thing of cash.
Therefore, the amount of cash balance would go up by $335.
Learn more about cash balance, refer to:
https://brainly.com/question/14020033
