Asked by Lauren Stacy on Jul 22, 2024
Verified
Bagrov Corporation had a net decrease in cash of $10,000 for the current year.Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000.What amount of cash was provided (used) in operating activities?
A) $100,000 provided.
B) $(100,000) used.
C) $80,000 provided.
D) $(80,000) used.
E) $(10,000) used.
Investing Activities
A section of the cash flow statement of a company which documents the buying and selling of long-term assets, including property, plant, and equipment.
Financing Activities
Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity.
Operating Activities
Transactions related to the primary operations of the business, such as cash received from sales of goods or services.
- Acquire comprehension of the components and the formulation of the statement of cash flows.
- Identify and calculate cash flows from operating activities using both the direct and indirect methods.
- Interpret the impacts of changes in current asset and liability accounts on cash flows.
Verified Answer
AG
Alejandro GomezJul 24, 2024
Final Answer :
C
Explanation :
To find out how much cash was provided or used in operating activities, we use the indirect method of the cash flow statement.
Net Decrease in Cash = Cash from Operating Activities + Cash from Investing Activities + Cash from Financing Activities
$10,000 = Cash from Operating Activities - $52,000 - $38,000
Cash from Operating Activities = $80,000 provided.
Therefore, the answer is (C).
Net Decrease in Cash = Cash from Operating Activities + Cash from Investing Activities + Cash from Financing Activities
$10,000 = Cash from Operating Activities - $52,000 - $38,000
Cash from Operating Activities = $80,000 provided.
Therefore, the answer is (C).
Learning Objectives
- Acquire comprehension of the components and the formulation of the statement of cash flows.
- Identify and calculate cash flows from operating activities using both the direct and indirect methods.
- Interpret the impacts of changes in current asset and liability accounts on cash flows.