Thomas Electric's Statement of Cash Flows Indicates a $12,000 Decrease

question 32

Multiple Choice

Thomas Electric's statement of cash flows indicates a $12,000 decrease in cash during the year.The statement also indicates that $28,000 was provided by operating activities and $15,000 was used by investing activities.How much is net cash provided/(used) by financing activities?

• A)($25,000)
• B)($1,000)
• C)($31,000)
• D)$42,000

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Definitions:

ATC Curve

Average Total Cost Curve, a graph that shows the cost per unit of output produced, plotted against the quantity of output.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in a decrease in the per-unit cost as the output increases.

AVC

Average Variable Cost, which is the cost a company incurs to produce one additional unit of a product, excluding fixed costs.

ATC

Average Total Cost, the total cost of production divided by the number of units produced, often used in economics to analyze production efficiency.