The net income of the company is $120.Accounts payable increase by $20,depreciation is $15,and equipment is purchased for $40.If the firm issued $110 in new bonds,what is the total change in cash for the firm for all activities?
A) Increase of $225
B) Increase of $130
C) Decrease of $195
D) Decrease of $110

Question

Quizplus · Accepted Answer

The total change in cash is the net income plus the increase in accounts payable, minus the depreciation, minus the purchase of equipment, plus the issuance of new bonds. So, the total change in cash is $120 + $20 - $15 - $40 + $110 = $225.

The Net Income of the Company Is $120