Use the Following Cash Flow Data of Haven Hardware for the Year

question 28

Multiple Choice

Use the following cash flow data of Haven Hardware for the year ended December 31, 2017.

What is the net increase or decrease in cash for Haven Hardware for 2017?

• A) −$94,000
• B) −$88,000
• C) $88,000
• D) $188,000

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Definitions:

Journal Entry

A record of a business transaction in an accounting system, which includes debits and credits in appropriate accounts to maintain the ledger's accuracy.

Date of Payment

The specific day on which payment is made or received.

Dividends Payable

A liability account recording the amount a company owes to its shareholders in announced dividends to be paid.

Retained Earnings

Retained earnings refer to the portion of a company's profits that is retained or kept within the company instead of being paid out to shareholders as dividends, to be reinvested in business operations or to pay off debt.