Team Shirts,Inc.had net cash from operating activities of $40,000.It paid $25,000 to buy a new screen-printing system,and repaid a $10,000 loan.Net cash for the period was ________.
A)$40,000
B)$75,000
C)$55,000
D)$5,000

Question

Quizplus · Accepted Answer

Net cash for the period is calculated by taking the net cash from operating activities and adjusting it for any investing and financing activities. Here, $40,000 (from operating activities) - $25,000 (investment in new system) - $10,000 (loan repayment) = $5,000.