Sources and Uses for the year just ended, you have gathered the following information about the Holly

Question:

Sources and Uses for the year just ended, you have gathered the following information about the Holly Corporation.

a. A $200 dividend was paid.

c. Fixed asset purchases were $900.

d. Inventories increased by $625.

e. Long-term debt decreased by $1,200.

Label each as a source or use of cash and describe its effect on the firm’s cash balance.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...