Asked by Woedem Malorku on May 07, 2024
Verified
Last year, Monroe Products had $25,000 net cash provided by its operating activities. Its investing activities used $30,000, and its financing activities provided $10,000. Its cash balance at the beginning of the year was $15,000. By how much did Monroe's cash balance increase?
A) $10,000
B) $0
C) $5,000
D) None of the above
Investing Activities
Transactions involving the purchase and sale of long-term assets and other investments, not related to the entity's daily business operations.
Financing Activities
Transactions and events that affect long-term liabilities and equity of a company, reflected in the cash flows from financing section of the cash flow statement.
Operating Activities
Activities that are directly related to the day-to-day operations of a company, including sales and expenses.
- Perceive how variations in operating, investing, and financing activities have ramifications on cash flow.
Verified Answer
($25,000 - $30,000 + $10,000) + $15,000 = $5,000
Therefore, the cash balance increased by $5,000.
Learning Objectives
- Perceive how variations in operating, investing, and financing activities have ramifications on cash flow.
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