Final Answer:
The cash outflow is best illustrated by option a. Better Bakery purchased a new oven for $28,600. This is a cash outflow because the company spent money to acquire a physical asset, the new oven. So, the correct options is a.
Step-by-step explanation:
In option a, Better Bakery's purchase of a new oven for $28,600 represents a cash outflow. This is because the company is spending money to acquire a tangible asset, the oven. Cash outflows occur when there is a decrease in a company's cash balance due to payments for goods, services, or investments. In this case, the cash is leaving the company to pay for the new oven.
Mathematically, the cash flow for option a is a negative value since it represents an expenditure. The notation for cash outflows is typically denoted with a negative sign. Therefore, the cash flow for Better Bakery's oven purchase can be represented as - $28,600.
On the other hand, options b, c, and d represent cash inflows or non-outflow transactions. Option b involves a withdrawal from a savings account, which is a reduction in cash savings but not a business expense. Option c represents a cash inflow as Paulette received a dividend payment. Option d indicates a cash inflow for Carlton Mills as he collected money from the sale of a product.
In summary, the purchase of the new oven in option a best illustrates a cash outflow for Better Bakery, as it involves the expenditure of cash to acquire a physical asset.
So, the correct options is a.