DECA Retail Merchandising Practice Exam

A cash inflow from operations refers to the money received by a business as a result of its core operating activities. This includes revenue generated from selling products or services to customers. When a company sells inventory, it receives cash or cash equivalents, thereby increasing its cash balance. This revenue is a crucial aspect of a company's operational success and is a key indicator of its ability to generate profit from its primary business activities.

The other options pertain to financial activities that do not qualify as operational cash inflows. Payments made to suppliers represent an outflow, as money is being spent rather than received. Loan repayments relate to debt servicing and do not come from operational activities; rather, they fall under financing activities. Investment purchases involve expenditures for acquiring assets, which is also an outflow. Therefore, the sale of inventory directly contributes to cash inflows from operations, making it the correct answer.