What Is the Change in Cash for a Firm with the Following

question 67

Multiple Choice

What is the change in cash for a firm with the following: $10,000 cash flow from operations,$1,600 cash used for new investment,a reduction in the level of debt of $2,000,$1,000 in cash dividends,and $200 in depreciation expense?

• A) $5,600
• B) $9,600
• C) $9,400
• D) $5,400

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Definitions:

Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues over a specified period.

Trade Balance

The gap between a nation's foreign sales and purchases, encompassing both goods and services.

Net Capital Outflow

The difference between a country's total exports of capital and total imports of capital during a specific time period.

Net Exports

The value of a country's total exports minus the value of its total imports.