1-

Which one of the following is a source of cash?

issuance of debt

payment to a supplier

purchase of inventory

granting credit to a customer

repurchase of common stock

2-

During the year, Oil Creek Auto decreased its accounts receivables by $121 and increased its inventory by $65. The firms sales increased by 20% from the prior year. What was the impact of these two accounts on the firms cash flow for the year?

If it was a source of cash, what was the amount?

(If it was a use of cash, use a negative sign on your answer.)

3-

At the beginning of the year, Potomac Supply Company had cash of $ 183, accounts receivable of $ 392, inventory of $ 721, and accounts payable of $463. At year end, cash was $167, accounts receivable was $409, inventory was $682, and accounts payable was $447.

In reviewing the firms net working capital, what is the amount of the net source or use of cash for the year? If it was a use of cash, use a negative sign on your answer.

4-

Pittsburgh Motors generated net income of $908, depreciation expense was $46, and dividends paid were $25. Accounts receivables increased by $27, inventory decreased by $14, net fixed assets decreased by $8, and accounts payable increased by $15. There was no interest expense.

What was the net cash flow from operating activity that would be shown on the statement of cash flows?

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