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)

Cornerstones of Financial Accounting
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Author:Jay Rich, Jeff Jones
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Chapter11: The Statement Of Cash Flows
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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)
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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