The uses of cash include($ in millions):
A) $110 from notes payable.
B) $1,075 from retained earnings.
C) $840 from ﬁxed assets.
D) $370 from inventory.
E) $70 from accounts receivable.

Question

The uses of cash include($ in millions):
A) $110 from notes payable. 
B) $1,075 from retained earnings. 
C) $840 from ﬁxed assets. 
D) $370 from inventory. 
E) $70 from accounts receivable.

Quizplus · Accepted Answer

The uses of cash include $840 from fixed assets, which indicates that the company has invested in property, plant, and equipment or other long-term assets. This investment in fixed assets could potentially generate future cash flows for the company. The other uses of cash are related to liabilities (notes payable) or operating activities (inventory and accounts receivable), which are not necessarily indicative of future growth or profitability. Retained earnings represent profits that have been reinvested back into the company and are not a direct use of cash, but rather a source of potential future cash flows.

The Uses of Cash Include($ in Millions)