Question

During the year, Douglass Industries decreased the accounts receivable by $230, decreased the inventory by $150, and increased the accounts payable by $110. These three changes represent a _____ of cash.

Answer 1

Answer:

increase

Explanation:

Cash flow from Operating Activities

decreased in accounts receivable            ($230)

decreased in the inventory                         $150

increased in accounts payable                    $110

Net Cash flow from Operating Activities    $30

Thus, these changes represents an increase of cash by $30