At the beginning of 2018, Rex Co. showed a debit balance in the cash account of $20,500. Total debits to this account during the year were $45,000, and total credits during the year were $35,000. The net (increase/decrease) in cash for 2018 equals $ .

Based on the information given the net increase in cash for 2018 equals $10,000 increase.

First step is to calculate the Ending balance

Ending balance=Beginning cash + Debit balances - Credit balances

Ending balance=$20,500 + $45,000 - $35,000

Ending balance= $30,500

Second step is to calculate Net increase in cash

Net increase in cash = Ending cash balance - Beginning cash balance

Net increase in cash = $30,500 - $20,500

Net increase in cash=$10,000 increase

Inconclusion  the net increase in cash for 2018 equals $10,000 increase.

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increase ; $30,500

Explanation:

The computation of the net cash increase or decrease is shown below:

=  Debit balance in the cash account + total debit account balance - total credit account balance

= $20,500 + $45,000 - $35,000

= $30,500

Since the cash account has a debit balance and the total of debit balance is greater than the total of credit balance so there would be an increase in net cash      

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