Information regarding the Martin Company in 2010 appears below: Net income $ 140 , 000 Dividends paid 20 , 000 Decrease in inventory 15 , 000 Increase in accounts payable 30 , 000 Proceeds from issue of common stock 70 , 000 Depreciation expense 10 , 000 \begin{array}{ll} ext { Net income } & \$ 140,000 \ ext { Dividends paid } & 20,000 \ ext { Decrease in inventory } & 15,000\ ext { Increase in accounts payable } & 30,000 \ ext { Proceeds from issue of common stock } & 70,000 \ ext { Depreciation expense } & 10,000\end{array} Net income Dividends paid Decrease in inventory Increase in accounts payable Proceeds from issue of common stock Depreciation expense $140 , 000 20 , 000 15 , 000 30 , 000 70 , 000 10 , 000 What was Martin's net increase in cash?A) $190, 000B) $225, 000C) $245, 000D) $255, 000

Question

Information regarding the Martin Company in 2010 appears below:    Net income  $ 140 , 000  Dividends paid  20 , 000  Decrease in inventory  15 , 000  Increase in accounts payable  30 , 000  Proceeds from issue of common stock  70 , 000  Depreciation expense  10 , 000 \begin{array}{ll}	ext { Net income }  &  \$ 140,000 \	ext { Dividends paid }  &  20,000 \	ext { Decrease in inventory }  &  15,000\	ext { Increase in accounts payable }  &  30,000 \	ext { Proceeds from issue of common stock }  &  70,000 \	ext { Depreciation expense }  &  10,000\end{array}  Net income   Dividends paid   Decrease in inventory   Increase in accounts payable   Proceeds from issue of common stock   Depreciation expense  ​ $140 , 000 20 , 000 15 , 000 30 , 000 70 , 000 10 , 000 ​   What was Martin's net increase in cash?A) $190, 000B) $225, 000C) $245, 000D) $255, 000

Keyla Alaniz · Accepted Answer

Final Answer : C, Explanation :  The net increase in cash is calculated by adding net income, depreciation, decrease in inventory, increase in accounts payable, and proceeds from the issue of common stock, then subtracting dividends paid: $140,000 + $10,000 + $15,000 + $30,000 + $70,000 - $20,000 = $245,000.

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