A List of Sources and Uses of Cash Are Given

question 115

Multiple Choice

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity.
-sale of office equipment

• A)operating
• B)investing
• C)financing activity.

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Definitions:

Dividend Payout Ratio

A financial metric that shows what percentage of a company's net income is distributed to its shareholders as dividends.

Retention Ratio

A financial metric that shows the percentage of a company's earnings that are not distributed as dividends but are reinvested in the business.

Profit Margin

The profit margin is the percentage of revenue that remains as profit after all expenses are deducted from sales.

Financial Planning

The process of defining goals, policies, procedures, programs, and budgets to manage the financial activities of an individual or organization effectively.