Lucky Louie Has the Following Cash Inflows and Outflows: $500

question 55

Multiple Choice

Lucky Louie has the following cash inflows and outflows: $500 rent, $200 car payment, $100 car repair, $100 discretionary purchases, $300 food, $150 electric bill, $3,500 monthly salary after deductions for tax, etc., $200 cell phone, $400 repayment of loan to dad, and $500 planned spending on weekend fun. What is Lucky's net cash flow?

• A) $1,050
• B) $200
• C) $1,150
• D) Not enough information regarding paycheck

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Definitions:

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Cash Dividend

A disbursement by a corporation from its profits to its stockholders, typically as cash.

Increases

The act or process of becoming larger or greater in size, number, value, or amount.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually paying fixed dividends.