Question
GameStart, Corp. 2018 and 2019 Balance Sheets ($ in millions) 2018 2019 2018 2019 Cash $ 300 $ 330 Accounts payable $ 1650 $ 1560
GameStart, Corp. 2018 and 2019 Balance Sheets ($ in millions) | |||||||||||||||||||||
| 2018 |
| 2019 |
|
| 2018 |
| 2019 |
| ||||||||||||
Cash | $ | 300 |
| $ | 330 |
| Accounts payable | $ | 1650 |
| $ | 1560 |
| ||||||||
Accounts receivable |
| 1140 |
|
| 1040 |
| Long-term debt |
| 1170 |
|
| 1370 |
| ||||||||
Inventory |
| 2020 |
|
| 1800 |
| Common stock |
| 3480 |
|
| 3460 |
| ||||||||
Total current assets | $ | 3460 |
| $ | 3170 |
| Retained earnings |
| 710 |
|
| 960 |
| ||||||||
Net fixed assets |
| 3550 |
|
| 4180 |
|
|
|
|
|
|
|
| ||||||||
Total assets | $ | 7010 |
| $ | 7350 |
| Total liabilities and equity | $ | 7010 |
| $ | 7350 |
| ||||||||
GameStart, Corp. 2019 Income Statement ($ in millions) | |||
Net sales | $ | 10,020 |
|
Cost of goods sold |
| 8110 |
|
Depreciation |
| 500 |
|
Earnings before interest and taxes | $ | 1410 |
|
Interest paid |
| 118 |
|
Taxable income | $ | 1292 |
|
Taxes |
| 452 |
|
Net income | $ | 840 |
|
Based on the information above, is the change in inventory a cash inflow or outflow?
Based on the information above, what is the net cash from financing?
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