1. 3.1 Sources and uses of cash Consider the following statements of financial position for the Binalong Surf Shop. Calculate the changes in the various accounts and, where applicable, identify the change as a source or use of cash. What were the major sources and uses of cash?

Did the company become more or less liquid during the year? What happened to cash during the year?

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Binalong Surf Shop 2019 and 2020 Statements of financial position ($ in millions) Assets Current assets Cash Accounts receivable Inventory 2020 2019 $ 215 $ 210 310 355 328 507 Total $ 853 $1072