Question

Which of the following statements is more likely if cash and marketable securities increase by $5,000 during a period in which cash provided by operations increases by $1,000 and cash used by investments decreases by $500?
A) Cash provided by financing increases by S6,500.
B) Cash used by financing decreases by $1,000.
C) Debt increases by more than cash dividends paid.
D) Debt is reduced by more than cash dividends paid.

Answer 1

Answer:

C) Debt increases by more than cash dividends paid

Explanation:

Based on the information given the statements that is more likely based on the below calculation will be : DEBT INCREASES BY MORE THAN CASH DIVIDENDS PAID reason been that the NET INCREASE IN THE CASH from financing activities was the amount of $4,500

Net Increase In The Cash from financing activities = $5000 - $1000 + $500

Net Increase In The Cash from financing activities= $4500