Decrease in inventory $ 540
Decrease in accounts payable 220
Increase in notes payable 205
Increase in accounts receivable 235
Did cash go up or down? By how much?
Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation.
A decrease in inventory is a source of cash.
A decrease in accounts payable is a use of cash.
An increase in notes payable is a source of cash.
An increase in accounts receivable is a use of cash.
Change in cash = Sources − Uses
Change in cash = $540 − 220 + 205 − 235
Change in cash = $290
Cash increased by $290
