Week 5 EOC: Quiz 5, Question 2

a. The change in Cash reflects a Use of funds. $14,000. Cash is an outflow of money therefore represents a use, where as inflows of money would represent a fund, for example

investors. "Sources represent inflows and uses represent outflows of funds for the hospitality business." 147.

b. The change in Net Receivables reflects a Use of funds. $30,000, because it is owed to the business. "Net receivables (the term net means that something has been subtracted out) are those monies owed to the business after subtracting any amounts that may not be collectible." 123. Because the Net receivables are owed to the business it is subtracted from any collectible income.

c. The change in Notes Payable reflects a Source of funds. $44,000. Notes payable are short term loans that can be payed back for a use funds, if not borrowed and payed back then it is a source. " Notes payable are short-term loans (less than a year). If you decrease notes payable by paying back money you borrowed, this is a use of funds for you." 151.

d. The change in Retained Earning reflects a Use of funds. $80,000. Retained earnings are the accumulated profits over a span of time, showing the profit that has not been distributed to dividends.