Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.
A) $37,000 increase.
B) $34,000 decrease.
C) $61,000 increase.
D) $7,000 increase.
E) $7,000 decrease.

Question

Quizplus · Accepted Answer

The net cash flow is calculated by adding cash inflows and subtracting cash outflows: $27,000 (inflows) - $22,000 (investing outflows) - $12,000 (financing outflows) = -$7,000, indicating a $7,000 decrease in cash.

Rico's Taqueria Had Cash Inflows from Operating Activities of $27,000;