Rico's Taqueria Had Cash Inflows from Operating Activities of $27,000;

question 46

Multiple Choice

Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

• A)$61,000 increase.
• B)$37,000 increase.
• C)$7,000 decrease.
• D)$7,000 increase.
• E)$34,000 decrease.

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Definitions:

Warranties

Legally binding promises or guarantees about the condition, quality, or performance of goods or services sold, which are enforceable under the sale of goods laws.

Indorsement

A signature or stamp on a financial document transferring the rights and responsibilities from one party to another.

Transferor

The party who transfers a right, title, or interest in property to another party, known as the transferee.

Dishonored Check

A check that a bank has refused to cash or pay because there are insufficient funds in the account on which it was drawn, or because it is considered a fraudulent check.