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Classify each of the following items as an operating, investing, or financing activity.
1. Dividends paid.
2. Sale of goods or services for cash.
3. Sale of equipment.
4. Purchase of inventory.
5. Repayment of notes payable.
Cash Flows
The overall flow of money in and out of a commercial entity, notably influencing its liquidity levels.
Option to Expand
The right, but not the obligation, to increase the size of an investment or project.
Net Present Value
A financial metric that calculates the present value of the net cash flow generated by a project, adjusting for the time value of money.
Project Analysis
The process of evaluating the viability, profitability, and risk of a project before committing resources to it.
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