Ask Question
BusinessBusiness
15 August, 02:41

A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the purchase of a new facility, and equity is issued in the amount of $300 to pay for the purchase. What is the change in net cash provided by operations? A. $50 increaseB. $100 increaseC. $150 increaseD. $250 increase

+1
Answers (1)
  1. 15 August, 02:54
    0
    A. $50 increase

    Explanation:

    Basically there are three types of activities:

    1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

    2. Investing activities: It records those activities which include purchase and sale of the fixed assets

    3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.

    The change in net cash provided by operation is shown below:

    = Investment made - purchased goods on credit - paid amount

    = $300 - $150 - $100

    = $50
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the purchase of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.50 in 2009.
Answers (1)
Assume Fiona is willing to pay $8 for a pizza cutter. Tim also wants one, but is only willing to pay $6 for one. At a pizza baker's convention, Fiona buys the last pizza cutter at the market price just before Tim can buy it.
Answers (1)
In its 2016 annual report, Caterpillar Inc. reported the following (in millions) : 2016 2015 Sales $38,537 $47,011 Cost of goods sold $28,309 $33,546 As a percentage of sales, did Caterpillar's gross profit increase or decrease during 2016?
Answers (1)
When the economy is experiencing an expansionan expansion automatic stabilizers will cause: a. transfer payments to decrease and tax revenues to decrease. b. transfer payments to increase and tax revenues to increase. c.
Answers (1)
Exercise 10-14 (Part Level Submission) Pronghorn Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product.
Answers (1)
New Questions in Business
A trade show is usually focused on what? a. an employer b. an industry c. a school d. a craft
Answers (1)
The Harrisburg Store has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars' worth of sales are generated from every $1 in total assets
Answers (1)
Select all maintenance procedures that may be performed in an office. update software replace printer cartridges clean copy machines install virus-protection software print copies to be distributed at a meeting
Answers (1)
Increases to owner's equity may be from expenses that are incurred. expenses exceeding revenue for the period. withdrawals of cash from the business by the owner. revenue that is derived from sales of goods or services
Answers (1)
Now consider a strangle using the same call with a strike price of $100 and a different put with a strike price of $95. Both have the same expiration date.
Answers (1)
Home » Business » A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the purchase of a new facility, and equity is issued in the amount of $300 to pay for the purchase.
Sign Up Forgot Password?