During the year, Kitchen Supply increased its accounts receivable by $130, decreased its inventory by $75, and decreased its accounts payable by $40. How did these three accounts affect the firm's cash flow for the year?

During the year, Kitchen Supply increased its accounts receivable by $130, decreased its inventory by $75, and decreased its accounts payable by $40. How did these three accounts affect the firm's cash flow for the year?



a. $245 use of cash

b. $165 use of cash

c. $95 use of cash

d. $95 source of cash

e. $165 source of cash




Answer: C


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