Asked by Woedem Malorku on May 07, 2024

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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.
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GZ
Gerardo ZermeñoMay 11, 2024
Final Answer :
C
Explanation :
To calculate the increase in cash balance, we need to subtract the total cash used in investing and financing activities from the net cash provided by operating activities and add the beginning cash balance.
($25,000 - $30,000 + $10,000) + $15,000 = $5,000
Therefore, the cash balance increased by $5,000.