Question

Stimulus Industries Inc. has 2017 total current assets of $14,871,000. Last year the total current assets were equal to $12,462,000. The change in total current assets is a ________ of cash in the amount of ________. Question 10 options: A) source; $14,871,000 B) source; $2,409,000 C) use; $2,409,000 D) There is not enough information to answer this question.

Answer 1

Stimulus Industries Inc. has 2017 total current assets of $14,871,000. Last year the total current assets were equal to $12,462,000. The change in total current assets is a ________ of cash in the amount of ________.

C) use; $2,409,000

Step-by-step explanation:

A use of cash occurs when the assets for the current period are more in value than the assets of the previous period. This fact means that a use occurs when an entity uses cash to increase the current assets, for example, from $12,462,000 to $14,871,000. The opposite will be the case, if the figures are reassigned. This is one of the ways to identify the use or source of cash when preparing the Statement of Cash Flows.