Asked by Sierra Giles on May 29, 2024
Verified
Partin Corporation's cash and cash equivalents consist of cash and marketable securities.Last year the company's cash account increased by $31,000 and its marketable securities account decreased by $22,000.Net cash provided by (used in) operating activities was $108,000.Net cash provided by (used in) financing activities was $(70,000) .Based on this information, the net cash provided by (used in) investing activities on the statement of cash flows was:
A) $9,000
B) ($29,000)
C) $38,000
D) ($38,000)
Marketable Securities
Financial instruments that are easily convertible into cash and may include stocks, bonds, and Treasury bills.
Investing Activities
Transactions involving the acquisition or disposal of long-term assets and investments, as reported in a company's cash flow statement.
- Analyze the classification of cash movements, both incoming and outgoing, in the cash flow statement.
- Outline the distinctions among operating, investing, and financing activities in the cash flow statement.
Verified Answer
FH
fatema hassnJun 01, 2024
Final Answer :
B
Explanation :
Net change in cash and cash equivalents = Net cash provided by (used in)operating activities + Net cash provided by (used in)investing activities + Net cash provided by (used in)financing activities
$31,000 - $22,000 = $108,000 + Net cash provided by (used in)investing activities - $70,000
$9,000 = $38,000 + Net cash provided by (used in)investing activities
Net cash provided by (used in)investing activities = $9,000 - $38,000 = -$29,000
$31,000 - $22,000 = $108,000 + Net cash provided by (used in)investing activities - $70,000
$9,000 = $38,000 + Net cash provided by (used in)investing activities
Net cash provided by (used in)investing activities = $9,000 - $38,000 = -$29,000
Learning Objectives
- Analyze the classification of cash movements, both incoming and outgoing, in the cash flow statement.
- Outline the distinctions among operating, investing, and financing activities in the cash flow statement.
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