Use the Equation Presented Below to Answer the Question That

question 52

Multiple Choice

Use the equation presented below to answer the question that follows: $$\begin{array} { l l } \text { Cash } = \mathrm { CL } + & \mathrm { LTL } + \mathrm { CS } + \mathrm { RE } - \mathrm { NCCA } - \mathrm { LTA } \\\text { where: } & \mathrm { CL } = \text { Current liabilities } \\& \mathrm { LTL } = \text { Long-term liabilities } \\& \mathrm { CS } = \text { Common stock } \\& \mathrm { RE } = \text { Retained earnings } \\& \mathrm { NCCA } = \text { Noncash current assets } \\& \mathrm { LTA } = \text { Long-term assets }\end{array}$$ ? Which of the following activities results in a cash inflow?

• A) Increases in noncash current assets (NCCA)
• B) Decreases in current liabilities (CL)
• C) Increases in common stock (CS)
• D) Decreases in retained earnings (RE)