What is the overall change in cash resulting from: $300 increase in inventories, $150 increase in accounts payable, $120 decrease in accounts receivable, $60 decrease in other current assets, $150 decrease in other current liabilities?
(A) -$120
(B) -$240
(C) $180
(D) $120

(A). - $ 120

Explanation:

The changes to cash are from the following rules

Increase in assets and decrease in liabilities is a decrease in cash

Decrease in assets and increase in liabilities is and increase in cash

Using the data in the question,

                                                                                         Cash Movement

increase in inventories $ 300                                         ( $ 300)

Increase in accounts payable  $ 150                                 $ 150

Decrease in accounts receivable $ 120                             $ 120

Decrease in other current assets $ 60                               $ 60

Decrease in other current liabilities $ 150                       ($ 150)        

Net movement in Cash                                                    $ (120)                                      

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lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o