Della's Donuts 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.

Question

Quizplus · Accepted Answer

The net increase or decrease in cash can be calculated by subtracting the total cash outflows from the total cash inflows. In this case, $27,000 - $22,000 - $12,000 = $7,000 decrease. Therefore, the best choice is C, which represents a $7,000 decrease in cash.

Della's Donuts Had Cash Inflows from Operating Activities of $27,000;