Rico's Taqueria Had Cash Inflows from Operating Activities of $27,000;cash

question 224

Multiple Choice

Rico's Taqueria had cash inflows from operating activities of $27,000;cash outflows from investing activities of $22,000,and cash outflows from financing activities of $12,000.Calculate the net increase or decrease in cash.

• A)$61,000 increase.
• B)$37,000 increase.
• C)$7,000 decrease.
• D)$7,000 increase.
• E)$34,000 decreasE.Net Increase/(Decrease)in Cash = Cash Flows from Operating Activities + Cash Flows from Investing Activities + Cash Flows from Financing Activities

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Definitions:

Accounts Receivable

Obligations of customers to pay a company for goods or services that have been dispensed but remain unpaid.

Journalize

The process of recording transactions in a company's journal, marking the first step in the accounting cycle.

Transactions

Economic events that involve transferring resources between entities, affecting financial statements.

Equipment

Assets used in the production or supply of services, often subject to depreciation over their useful lives.