Week 4 EOC: Chapter 5 Question 2

a. Did the change in Cash reflect a Source or a Use of funds? What was the amount of that change? The change in cash from 336,000 to 350,000 is considered a Use of 14,000 "Sources represent inflows and uses represent outflows of funds for the hospitality business." (147)

b. Did the change in Net Receivables reflect a Source or a Use of funds? What was the amount of that change? The change in net recieveables from 1,520,000 to 1,550,000 is considered a Source of 30,000

c. Did the change in Notes Payable reflect a Source or a Use of funds? What was the amount of that change? The change in notes payable from 134,000 to 90,000 is considered a Use of 44,000. "One tool that can be used to help you identify money inflows and outflows of a hospitality business is to calculate its sources and uses of funds from its balance sheets from last period to this period." (147)

d. Did the change in Retained Earnings reflect a Source or a Use of funds? What was the amount of that change? The change in retained earnings from 1,146,000 to 1,250,000 is considered a Source of 104,000 "Retained earnings refer simply to the accumulated amount of profits over the life of the business that have not been distributed as dividends." (128)

e. What was the total amount of Sources and Uses of Funds? The total amount of sources was 453,000 and the uses were 1,033,000