Martin Company Is Preparing Its Statement of Cash Flows Using

question 22

Multiple Choice

Martin Company is preparing its statement of cash flows using the indirect method. During the year, they purchased equipment for $15,000 cash. Which of the following statements is true?

• A)$15,000 would be shown as a negative cash flow in the operating activities section.
• B)$15,000 would be shown as a negative cash flow in the investing activities section.
• C)$15,000 would be shown as a positive cash flow in the investing activities section.
• D)$15,000 would be shown as a positive cash flow in the financing activities section.

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Definitions:

Manual System

A system or process performed by human effort rather than by using digital tools or automation.

Scheduling Optimization

The process of determining the most efficient and effective schedule for resources and activities, often involving complex computational techniques to find the optimal solution.

Retail Stores

Physical locations where consumers can purchase goods or services directly from a business.

Customer Traffic

The flow or volume of customers visiting a business location, website, or engaging with a service, often used to gauge business performance and marketing effectiveness.