Stojko Corporation Had a Net Decrease in Cash of $10,000

question 124

Multiple Choice

Stojko Corporation had a net decrease in cash of $10,000 for the current year. Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000. What amount of cash was provided (used) in operating activities?

• A) $100,000 provided.
• B) $(100,000) used.
• C) $80,000 provided.
• D) $(80,000) used.
• E) $(10,000) used.

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Definitions:

AFC

In economic terms, typically stands for Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

ATC

Average total cost, which is the total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Economies Of Scale

Companies achieve cost benefits when their production processes become more efficient, leading to a decrease in the per-unit cost as the scale of production grows.

Pin Factory

An example used by Adam Smith to illustrate how division of labor increases productivity.