If the net cash inflow = $12,000, Investing cash flow = $(4,000) and operating cash flow = $7,000, the financing cash flow equals ________.
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A. B. C. D.A
financing cash flow = 12,000 - (-4,000) - 7,000 = $9,000
To determine the financing cash flow, we need to use the formula:
Net Cash Inflow = Operating Cash Flow + Investing Cash Flow + Financing Cash Flow
Given: Net Cash Inflow = $12,000 Operating Cash Flow = $7,000 Investing Cash Flow = $(4,000)
Substituting these values into the formula, we have:
$12,000 = $7,000 + (-$4,000) + Financing Cash Flow
To solve for the financing cash flow, we rearrange the equation:
Financing Cash Flow = $12,000 - $7,000 - (-$4,000) Financing Cash Flow = $12,000 - $7,000 + $4,000 Financing Cash Flow = $9,000
Therefore, the financing cash flow equals $9,000. The correct answer is option A. $9,000.