Table 17-3 Cando Company Uses the Indirect Method to Prepare Its Statement

question 98

Multiple Choice

Table 17-3
Cando Company uses the indirect method to prepare its statement of cash flows. Refer to the following information:
Additional information provided:

-Refer to Table 17-3.What was the net amount of cash from investing activities?

• A) $30,000 negative
• B) $60,000 positive
• C) $52,000 negative
• D) $38,000 negative

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Definitions:

Payback Period

The payback period is the length of time required to recover the cost of an investment.

Rate Of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Internal Rate

Typically refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.

Net Present Value

A calculation that determines the present value of future cash flows minus initial investment; it's used to assess the profitability of an investment.