3.1 Sources and Uses of Cash Consider the following balance sheets for the Philippe Corporation. Calculate the changes in the various accounts and, where applicable, identify the change as a source or use of cash. What were the major sources and uses of cash? Did the company become more or less liquid during the year? What hap- pened to cash during the year? PHILIPPE CORPORATION 2020 and 2021 Balance Sheets (in millions) 2020 2021 Assets Current assets Cash $ 210 355 $ 215 310 Accounts receivable Inventory 507 328 $1,072 $ 853 Total $6,085 $6,527 Fixed assets Net plant and equipment Total assets $7,157 $7,380 (continued)
3.1 Sources and Uses of Cash Consider the following balance sheets for the Philippe Corporation. Calculate the changes in the various accounts and, where applicable, identify the change as a source or use of cash. What were the major sources and uses of cash? Did the company become more or less liquid during the year? What hap- pened to cash during the year? PHILIPPE CORPORATION 2020 and 2021 Balance Sheets (in millions) 2020 2021 Assets Current assets Cash $ 210 355 $ 215 310 Accounts receivable Inventory 507 328 $1,072 $ 853 Total $6,085 $6,527 Fixed assets Net plant and equipment Total assets $7,157 $7,380 (continued)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 19E
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Transcribed Image Text:3.1 Sources and Uses of Cash Consider the following balance sheets for the Philippe
Corporation. Calculate the changes in the various accounts and, where applicable,
identify the change as a source or use of cash. What were the major sources and uses
of cash? Did the company become more or less liquid during the year? What hap-
pened to cash during the year?
PHILIPPE CORPORATION
2020 and 2021 Balance Sheets
(in millions)
2020
2021
Assets
Current assets
Cash
$ 210
355
$ 215
310
Accounts receivable
Inventory
507
328
$1,072
$ 853
Total
$6,085 $6,527
Fixed assets
Net plant and equipment
Total assets
$7,157
$7,380
(continued)
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