A firm has the following account balances. Which one of the following statements

ID: 2773735 • Letter: A

Question

A firm has the following account balances. Which one of the following statements is correct concerning those balances?
Account                            Beginning Balance           Ending Balance
Accounts Receivables      $18,700                            $19,600
Accounts Payablees        $23,100                             $22,800
Inventory                          $29,700                             $28,600
Long-Term Debt               $48,400                             $42,600
Common Stock                $56,000                              $54,500

A. Accounts Receivable is a $900 source of cash.
B. Common stock is a $1,500 source of cash.
C. Net working capital, excluding cash, is a $1.500 use of cash.
D. Long-term debt is a $5,800 source of cash.
E. Total debt is a $6,100 use of cash.

Explanation / Answer

Account

Beginning Balance

Ending Balance

Net Change

Accounts Receivables

$ 18,700

$ 19,600

$ 900

Accounts Payables

$ 23,100

$ 22,800

-$ 300

Inventory

$ 29,700

$ 28,600

-$ 1,100

Long-Term Debt

$ 48,400

$ 42,600

-$ 5,800

Common Stock

$ 56,000

$ 54,500

-$ 1,500