Ironhorse Tools has used $700,000 from its total annual earnings of $1,650,000 to invest in upgrading its manufacturing facilities. Its accounts receivable from customers is estimated to be $130,000 and accounts payable $75,000. In monetary terms, what would Ironhorse's resource flows be?
A) $1,650,000
B) $130,000
C) $75,000
D) $700,000

Question

Quizplus · Accepted Answer

In monetary terms, Ironhorse Tools' resource flows would be $700,000. Resource flows are a firm's level of investments to maintain or build a resource.

Ironhorse Tools Has Used $700,000 from Its Total Annual Earnings