Sources and Uses of Cash Consider the following balance sheets for the Philippe Corporation. Calculate the changes in the various accounts and, where applicable, identify the change as a source or use of cash. What were the major sources and uses of cash? Did the company become more or less liquid during the year? What happened to cash during the year? PHILIPPE CORPORATION 2006 and 2007 Balance Sheets ($ in millions) 2006 2007 Assets Current assets Cash $ 210 $ 215 Accounts receivable 355 310 Inventory 507 328 Total $1,072 $ 853 Fixed assets Net plant and equipment $6,085 $6,527 Total assets $7,157 $7,380 Liabilities and Owners’ Equity Current liabilities Accounts payable $ 207 $ 298 Notes payable 1,715 1,427 Total $1,922 $1,725 Long-term debt $1,987 $2,308 Owners’ equity Common stock and paid-in surplus $1,000 $1,000 Retained earnings 2,248 2,347 Total $3,248 $3,347 Total liabilities and owners’ equity $7,157 $7,380