Asked by Jaylen Maloy on Jul 04, 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: Garrison 16e Rechecks 2017-11-18
A) $9,000
B) ($29,000)
C) $38,000
D) ($38,000)
Investing Activities
Transactions involving the purchase and sale of long-term assets and other investments not related to the day-to-day operations.
Net Cash Provided
The sum of cash inflows minus cash outflows over a period, typically highlighted in a company’s cash flow statement.
Market Securities
Financial instruments that are traded in financial markets, such as stocks, bonds, and derivatives, representing investment vehicles for owners.
- Attain insight into the parts and division of cash flows in the realms of operating, investing, and financing activities.
- Analyze the impact of specific transactions on the cash flow statement and its sections (operating, investing, financing).
Verified Answer
GP
Gavin PeartJul 10, 2024
Final Answer :
B
Explanation :
To calculate the net cash provided by (used in) investing activities, we can use the formula:
Net Cash provided by (used in) investing activities = Change in cash and cash equivalents - Net cash provided by (used in) operating activities - Net cash provided by (used in) financing activities
Plugging in the numbers, we get:
Net cash provided by (used in) investing activities = (31,000 - (-22,000)) - 108,000 - (-70,000)
Net cash provided by (used in) investing activities = $9,000 - 38,000
Net cash provided by (used in) investing activities = ($29,000)
Therefore, the answer is (B) ($29,000).
Net Cash provided by (used in) investing activities = Change in cash and cash equivalents - Net cash provided by (used in) operating activities - Net cash provided by (used in) financing activities
Plugging in the numbers, we get:
Net cash provided by (used in) investing activities = (31,000 - (-22,000)) - 108,000 - (-70,000)
Net cash provided by (used in) investing activities = $9,000 - 38,000
Net cash provided by (used in) investing activities = ($29,000)
Therefore, the answer is (B) ($29,000).
Learning Objectives
- Attain insight into the parts and division of cash flows in the realms of operating, investing, and financing activities.
- Analyze the impact of specific transactions on the cash flow statement and its sections (operating, investing, financing).