Murky Limited has a net decrease in cash and cash equivalents of £5m, cash inflows from financing activities of £30m and cash outflows from operating activities of £10m. What is the cash outflow from investing activities?

Question

Quizplus · Accepted Answer

The net decrease in cash and cash equivalents is the result of cash flows from operating, investing, and financing activities. Given the net decrease is £5m, cash inflows from financing are £30m, and cash outflows from operating are £10m, the cash outflow from investing activities must be £25m to balance the equation: £30m (financing inflow) - £10m (operating outflow) - £25m (investing outflow) = -£5m (net decrease).

Murky Limited Has a Net Decrease in Cash and Cash