Question

Mable Corporation in forecast the cash flows for a project estimates that it will need $50,000 in increased assets in year 1 and will receive $20,000 from increased liabilities in the same year. What is Mable’s net inflow or outflow for year 1.

Answer 1

Mable Corporation's net inflow or outflow for year 1 is $30,000.

Step-by-step explanation:

Mable Corporation's net inflow or outflow for year 1 can be calculated by subtracting the increase in liabilities from the increase in assets. In this case, the increase in assets is $50,000 and the increase in liabilities is $20,000. Therefore, the net inflow or outflow for year 1 is $50,000 - $20,000 = $30,000.