Calculate the Cash Inflows (Outflows) from Investing Activities If Total

question 63

Multiple Choice

Calculate the cash inflows (outflows) from investing activities if total cash decreased by $40,000; cash inflows from operating activities were $14,000 and cash outflows from financing activities were $60,000.

• A)Inflow of $5,000
• B)Inflow of $6,000
• C)Outflow of $5,000
• D)Outflow of $6,000

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Definitions:

Suppliers

Businesses or individuals that provide goods or services to another entity under a contractual agreement.

Credit Policy

A set of guidelines that a company uses to determine the creditworthiness of potential customers, influencing terms of credit and payment collections.

Collection of Revenues

The process of gathering all income generated from various sources, including sales, services, and investments.

Cost of Debt

The effective rate that a company pays on its current debt, incorporating interest payments and other related costs.