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.

Question

Quizplus · Accepted Answer

Net increase or decrease in cash = cash inflows - cash outflows
= $27,000 - ($22,000 + $12,000)
= $27,000 - $34,000
= -$7,000
Therefore, the correct option is C) $7,000 decrease.

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