Question

Adelphi Company has budgeted activity for March to reflect net income $125,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $21,000 payables to increase (decrease -) by $31,000 and Depreciation Expense is $48,000. Use this information to determine how much cash will increase (decrease) during the month of March. (Decreases in accounts receivable or accounts payable will have a negative sign

Answer 1

	Increase (Decrease) in cash = Net income + Depreciation expense - increase in accounts receivable + increase in accounts payable = 125,000 + 48,000 - 21,000 + 31,000 = 183,000 increase