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A Firm Purchases Goods on Credit Worth $100

Question 63

Multiple Choice

A firm purchases goods on credit worth $100. The same firm pays off $80 in old credit purchases. An investment is made via the purchase of a new facility, and equity is issued in the amount of $200 to pay for the purchase. What is the change in net cash provided by financing?


A) $20 increase
B) $80 increase
C) $100 increase
D) $200 increase

Correct Answer:

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