Question

A company reported total assets at the end of 2017 of $95,000; including cash of $35,000, accounts receivable of $20,000, and inventory of $40,000. It reported total assets at the end of 2018 of $110,000; including cash of $44,000; accounts receivable of $29,000, and inventory of $37,000. Compute the net increase or decrease in cash in 2018.

Answer 1

Answer:

The net increase of cash in 2018 is of $9,000

Explanation:

We can lay out the information as follows:

2017

Cash                                 $35,000

Accounts Receivable      $20,000

Inventory                          $40,000

Total Assets                     $95,000

2018

Cash                                 $44,000

Accounts Receivable      $29,000

Inventory                          $37,000

Total Assets                     $100,000

Net cash = Cash in 2018 - Cash in 2017

               = $44,000 - $35,000

               = $9,000