On a Statement of Cash Flows for a Manufacturer of Digital

question 74

Multiple Choice

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from operating activities would include which of the following?

• A) the sale of land adjacent to the manufacturer's administrative office building
• B) repayment of long-term loan by a wholesaler of weather-related items
• C) increases in the manufacturer's inventory
• D) the money borrowed from the bank to start the company

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Definitions:

Marginal Analysis

The comparison of marginal (“extra” or “additional”) benefits and marginal costs, usually for decision making.

Marginal Benefits

The uplift in utility or enjoyment gained through consuming or producing an added unit of a good or service.

Marginal Costs

The added cost incurred when one more unit of a good or service is produced.

Marginal Benefit

The additional pleasure or utility gained when one more unit of a good or service is consumed.