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beginig =1000
subtract200 ( increase in A/R
subtract300 ( increase in inventory )
add 100 ( increase in A/P )
EQUAL
600
We're all about shortcuts to make financial statement analysis easier,
600 Is the answer
Ending Balance is900
1000 begin balance
(200) increase in accounts receivable balance decrease cash flow
(300) also inventory
100 increase in accounts payable balance increase cash flow
_____
600 end balance
if you pay the inventory purchase in cash than900$ if not , than it can't make any effect on cash account .
end balance of cash flow1000 $ those transactions do not affect cash flow
Beginning cash balance --------------------------------------- $1,000
Add Increase in A/payable ....................... $ 100
Less Increase in A/Receivable .................. $ (200)
Less Increase in inventory ......................... $ (300)
Net decrease in cash account ------------------------------ $ (400)
Ending cash balance ------------------------------------------ $ 600