Question

Are all decreases to cash the result of an unfavorable? situation? A. ?Yes, decreases to cash...

Are all decreases to cash the result of an unfavorable? situation?

A.

?Yes, decreases to cash are always bad.

B.

?No, cash could decrease as a result of acquiring

long?term

assets which the company needs to expand or stay competitive.

C.

?Yes, cash could decrease as a result of paying off

longminus?term

debt which is an unfavorable action to take.

D.

?No, cash could decrease because the company issued more stock.

On its Statement of Cash? Flows, Mike's Motors reported cash flow from operating activities of 109,000?,

cash flow from investing activities of $87,000?, and cash flow from financing activities of $58,000?). Mike's Motors invested $54,000 cash in long?term assets.? Mike's Motors' free cash flow? is:

A.

$4,000.

B.

$55,000.

C.

$33,000.

D.

$84,000.

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