Cash flow from operations for the Albert Company is $4 million. If the cash flow from financing is $1 million and the cash flow for investment is $2 million, the change in cash for the fiscal period is closest to:
A) $1 million.
B) $3 million.
C) $4 million.
D) $7 million.

Question

Quizplus · Accepted Answer

The change in cash for the fiscal period is calculated by adding the cash flows from operations, financing, and investment. Therefore, $4 million (operations) + $1 million (financing) + $2 million (investment) = $7 million. However, since the cash flow for investment is typically an outflow, it should be subtracted, leading to $4 million + $1 million - $2 million = $3 million.

Cash Flow from Operations for the Albert Company Is $4