If a Company Reported Net Income for the Year of $160,000,cash

question 25

Multiple Choice

If a company reported net income for the year of $160,000,cash from operating activities of $105,000,cash flows from financing activities of $225,000,and cash used in investing activities of $450,000,what was their change in cash for the year?

• A)$120,000 decrease
• B)$170,000 decrease
• C)$40,000 increase
• D)$65,000 decrease

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Definitions:

Commercial Paper

Short-term, unsecured promissory notes, issued by companies, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Mortgages

Loans specifically created for purchasing real estate, secured by the property itself, which is to be repaid along with interest over a predetermined period.

Mortgage-backed CDOs

Collateralized debt obligations that are secured by mortgage-backed securities as the underlying assets.

Asset

An economic resource that is expected to provide benefits to the owner in future periods.