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Rico’s Taqueria had cash inflows from operating activities of $35,000; cash outflows from investing activities of $30,000, and cash outflows from financing activities of $20,000. Calculate the net increase or decrease in cash.

Respuesta :

Answer:

$15,000 decrease

Explanation:

The formula for calculating the net increase or the decrease in the cash is:

[tex]Net\ change\ in\ the\ cash\ =\ Cash\ inflows\ from\ operations\ -\ Cash\ outflows \from\ investing\ +\ Cash\ inflows\ from\ financing[/tex]

Given that:

Cash inflows from the operations = $35,000

Cash Flows  from the Investing Activities = $30,000

Cash Flows from the Financing Activities  = $20,000

Net Increase/Decrease in Cash = $35,000 - $ 30,000 + $ 20,000

Net Increase/Decrease in Cash = - $15,000

Since, negative sign signifies decrease.

So, there is net decrease of $15,000 in cash.

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