another problem plz I need help

[cola]

Question (3)
A firm starts year 2012 with a cash balance of $ 20,000. During the year the net income was 28,000, depreciation amount was $2000, account receivable decreased by $1100, accounts payable decreased by $4200, inventory increased by $ 20,000, net fixed assets increased by 2000. Also $3500 was paid as dividend and net borrowing increased by $ 5500.
A) Describe the effects of each of these transactions on cash flow.
B) What should be the amount of cash in the beginning of 2013?

 

[longnguyen87]

A. Effects:
Depreciation: +
Decreased AR: +
Decreased AP: -
Increased IV: -
Increased Net FixA: -
Dividend: -
Net Borrowing: +

B. Now all you need to do is to add and subtract all of the above transactions according to its effects to Net Income. Then add or subtract final result to begin cash balance to get end of year cash balance.