You are given the following information for Ortiz Corporation: Decrease in inventory $ 610 Decrease in accounts payable 255 Increase in notes payable 240 Increase in accounts receivable 270 1. Did cash go up or down and by how much? 2. Classifyy each event as a source of cash.
You are given the following information for Ortiz Corporation: Decrease in inventory $ 610 Decrease in accounts payable 255 Increase in notes payable 240 Increase in accounts receivable 270 1. Did cash go up or down and by how much? 2. Classifyy each event as a source of cash.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
| You are given the following information for Ortiz Corporation: |
| Decrease in inventory | $ 610 |
|---|---|
| Decrease in accounts payable | 255 |
| Increase in notes payable | 240 |
| Increase in accounts receivable | 270 |
1. Did cash go up or down and by how much?
2. Classifyy each event as a source of cash.
Transcribed Image Text:Decrease in inventory is a
Decrease in accounts payable is a
Increase in notes payable is a
Increase in accounts receivable is a
Expert Solution
Step 1
concept.
Increase or decrease in current assets and current liabilities affects cash flow.
If there is increase in current assets or decrease in current liability , then there is cash outflow.
If there is decrease in current assets or increase in current liabilities, then there is cash inflow.
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