Last Year Ty's Grocery Had Inventory of $237,500 and Fixed

Multiple Choice

Last year Ty's Grocery had inventory of $237,500 and fixed assets of $51,400. This year, Ty's has inventory of $231,900 and fixed assets of $48,700. Depreciation for this year is $6,300. Which one of the following statements is true given this information?

A) Both inventory and fixed assets are uses of cash in the amounts of $5,600 and $3,600, respectively.
B) Both inventory and fixed assets are uses of cash in the amounts of $5,600 and $2,700, respectively.
C) Inventory is a source of cash in the amount of $5,600 and fixed assets is a use of cash in the amount of $2,700.
D) Inventory is a source of cash in the amount of $5,600 and fixed assets is a use of cash in the amount of $3,600.
E) Both inventory and fixed assets are sources of cash in the amounts of $5,600 and $3,600 respectively.