The statement of cash flows shows the following information. What is the impact on cash?
Cash inflow from operating activities $ 126,500
Cash inflow from financing activities 167,500
Cash outflow for investing activities 290,000
A) It decreases by $ 4,000.
B) It decreases by $ 294,000.
C) It increases by $ 4,000.
D) It increases by $ 294,000.

Question

Quizplus · Accepted Answer

The net impact on cash is calculated by adding the inflows and subtracting the outflows: $126,500 (operating) + $167,500 (financing) - $290,000 (investing) = $4,000 increase.

The Statement of Cash Flows Shows the Following Information