Ironhorse Tools has used $700,000 from its total annual earnings of $1,650,000 to invest in upgrading its manufacturing facilities. Its accounts receivable from customers is estimated to be $130,000 and accounts payable $75,000. In monetary terms, what would Ironhorse's resource flows be? Group of answer choices

Question

Business

Paisley Stein

24 March, 07:46

Ironhorse Tools has used $700,000 from its total annual earnings of $1,650,000 to invest in upgrading its manufacturing facilities. Its accounts receivable from customers is estimated to be $130,000 and accounts payable $75,000. In monetary terms, what would Ironhorse's resource flows be? Group of answer choices

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Answers (1)

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Julien Pruitt · Answer 1

The answer is: $700,000

Explanation:

A company's resource flows are the amount it reinvests to maintain (or in this case upgrade) or build a resource, for example new machinery or infrastructure renovations.

In this case, Ironhorse Tools spent $700,000 to upgrade its manufacturing facilities.