A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the purchase of a new facility, and equity is issued in the amount of $300 to pay for the purchase.

What is the change in net cash provided by operations?

Purchasing goods on credit and paying off credit purchases will reduce cash while issuing equity will increase cash. Cash flow from the three operations listed is:

Cash flow = - credit purchases - credit payments + cash raised for investment

Cash flow = -$150 -$100 + $300

Cash flow = $50

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A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the purchase of a new facility, and equity is issued in the amount of $300 to pay for the purchase. What is the change in net cash provided by operations?

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A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the purchase of a new facility, and equity is issued in the amount of $300 to pay for the purchase.

What is the change in net cash provided by operations?