Ambiguous loan direction prevents precise net cash inflow calculation Steps:

• Share issue generates $50,000 cash inflow (50,000 shares ×$1).
• Bonus share issue generates $0 cash (non-cash capitalization of reserves).
• Debenture issue generates $100,000 cash inflow (at par value).
• Loan issued generates uncertain cash flow: +$75,000 if borrowed by company, -$75,000 if lent by company. Why B is correct:
• Not enough information to determine exact net; B aligns with possible interpretations but lacks confirmation. Why the others are wrong:
• A assumes loan outflow ($50,000 +$100,000 - $75,000 =$75,000).
• C assumes partial inflows without basis ($50,000 +$60,000?).
• D assumes higher inflows without support ($50,000 +$70,000?).

Final answer: Not enough information.