In a Given Year a Company Decreased Its Inventory by $250,000,purchased

question 34

Multiple Choice

In a given year a company decreased its inventory by $250,000,purchased $350,000 worth of fixed assets and took on a new $500,000 loan.What is the net change of the company's cash as a result of these transactions?

• A) $100,000
• B) -$100,000
• C) $400,000
• D) -$400,000

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Definitions:

Present Value

The modern-day value of a potential future sum of money or sequence of financial inflows, accounting for a particular return rate.

Registered Education Savings Plan

A tax-advantaged savings account in Canada designed to help save for a child's post-secondary education.

Compounded Semi-annually

Involves calculating and adding interest to the principal amount of an investment or loan twice per year, leading to compound growth over time.

Semi-annual Withdrawals

Withdrawals made twice a year from an account or investment.