Question

The following selected data are from a recent statement of cash flows: Net cash flow from operating activities $ 35,000 Net cash flow used for investing activities (20,000) Net cash flow used for financing activities 60,000 Ending cash balance 50,000 What is the net change in cash for the period? a. $115,000 b. $75,000 c. $125,000 d. $(75,000)

Answer 1

The net change in cash for the period is $75,000

Thus, the correct option id b. $75,000

Step-by-step explanation:

For computing the net change in cash for the period, the following equation is used which is shown below:

= Net cash flow from operating activities + Net cash flow used for investing activities + Net cash flow used for financing activities

= $35,000 - $20,000 + 60,000

= $75,000

Only the ending cash balance is given which is not of any use, if beginning balance is also given than we can verify our solution also.

So, the net change in cash show the positive amount which denotes increase in the cash balance.

Hence, the net change in cash for the period is $75,000

Thus, the correct option id b. $75,000