Question

Diamond Productions reports a net change in cash of $50,000 on its statement of cash flows. What is the net cash provided by operating activities if the net cash provided by investing and financing activities are $5,000 and $14,000, respectively?

Answer 1

The net cash provided by operating activities is $31,000.

Step-by-step explanation:

The net cash provided by operating activities can be calculated by subtracting the net cash provided by investing and financing activities from the net change in cash.

In this case, the net cash provided by operating activities is $50,000 - $5,000 - $14,000 = $31,000.

This means that Diamond Productions generated $31,000 of cash from its core operations.

Answer 2

$21,000

Step-by-step explanation:

Given;

net change in cash = $50,000

net cash provided by investing = $5,000

net cash provided financing activities = $14,000

net change in cash = net cash provided by operating + net cash provided by investing + net cash provided financing activities

50000 = net cash provided by operating + 5000 + 14000

net cash provided by operating = 50000 - 5000 - 14000

= 21000

net cash provided by operating is $21,000