Question

Rico's Taqueria had cash inflows from operating activities of $29,000; cash outflows from investing activities of $24,000, and cash outflows from financing activities of $14,000. Calculate the net increase or decrease in cash.

Answer 1

There is net decrease of $9,000 in cash

Step-by-step explanation:

Rico's Tacqueria had cash inflows from operating activities of $29,000

Cash outflows from investing activities

$24,000

Cash outflows from financing activities

$14,000

The net decrease in cash

= $29,000 - ($24,000 + $14,000)

= -$9,000

The balance is a decrease because the value of outflow is more than the inflow value.

It therefore means that there is net decrease of $9,000 in cash