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Anna007 [38]
3 years ago
6

A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the

purchase of a new facility, and equity is issued in the amount of $300 to pay for the purchase. What is the change in net cash provided by operations?A. $50 increaseB. $100 increaseC. $150 increaseD. $250 increase
Business
1 answer:
Oxana [17]3 years ago
4 0

Answer:

A. $50 increase

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

The change in net cash provided by operation is shown below:

= Investment made - purchased goods on credit - paid amount

= $300 - $150 - $100

= $50

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