Della's Donuts Had Cash Inflows from Operating Activities of $27,000;

question 168

Multiple Choice

Della's Donuts had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.

• A) $61,000 increase.
• B) $37,000 increase.
• C) $7,000 decrease.
• D) $7,000 increase.
• E) $34,000 decrease.

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Definitions:

Shortage

A circumstance in which the market desire for a service or product is greater than the supply.

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded, often leading to price decreases.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers.

Price Floor

A minimum price set by the government for certain goods and services, intended to ensure fair conditions for producers.