At the beginning of the year, Brick Makers had cash of $183, accounts receivable of $392, accounts payable of $463, and inventor

Question

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At the beginning of the year, Brick Makers had cash of $183, accounts receivable of $392, accounts payable of $463, and inventor

y of $714. At year end, cash was $167, accounts payables was $447, inventory was $682, and accounts receivable was $409. What is the amount of the net source or use of cash by working capital accounts for the year?

Business

1 answer:

marusya05 [3.7K] · Answer 1 · 2026-03-15T19:40:59+03:00

Answer:

Net source amount is $15

Explanation: $Working\ capital= Current\ assets-Current\ liabilities$

$source\ of\ cash =[Cash+AR+Inventory]- [Amount\ Payable]$

cash = $183

received sum = $392

inventory total =$714

accounts payable total =$463

current assets = (183+392+714)-463=$826

current liabilities =(167+682+409-447)=$811

cash at year end = $167

total received = $409

inventory value =$682

accounts payable total =$447

current liabilities at year end =(167+682+409-447)=$811

Thus, as current liabilities exceed current assets, there will be a loss in accounts

Therefore, the cash source is calculated as (826-811) = $15.