A Services Firm Does All Its Business in Cash Only

question 38

Multiple Choice

A services firm does all its business in cash only. The firm projects a cash balance of $2,000 in its account after all taxes and costs are paid. The owners plan to invest $5,000 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:

Synaptic Vesicle

A small, spherical packet located within presynaptic terminals of neurons that stores neurotransmitters, which are released into the synaptic cleft during neurotransmission.

Synaptic Cleft

The narrow gap between the presynaptic neuron and postsynaptic cell where neurotransmitters are released to facilitate neuronal communication.

Norepinephrine

A neurotransmitter and hormone involved in the body's natural response to stress, increasing heart rate, blood pressure, and blood sugar levels.

Bronchi

The main passageways into the lungs, which branch from the trachea and further divide into smaller airways called bronchioles.