A Services Firm Does All Its Business in Cash Only

question 80

Multiple Choice

A services firm does all its business in cash only. The firm projects a cash balance of $3,000 in its account after all taxes and costs are paid. The owners plan to invest $8,000 and pay a dividend of $1000. How much net new financing is needed?

• A) $4,000
• B) $5,000
• C) $6,000
• D) $7,000

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Definitions:

High Amplitude

Describes a wave with a large peak value, indicating strong oscillations compared to a lower amplitude wave.

Driving Simulator

A virtual reality system designed to imitate the experience of driving a vehicle, often used for research, training, and assessment of driving skills and behaviors.

Cell Phone Use

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Red Light

Often used metaphorically to indicate a command or signal to stop, originating from traffic signals indicating the stop condition.