Question

If total change in cash = $44,000, net operating cash flows = $22,000, and net investing cash flows = ($13,000); then net financing cash flows =

A) $45,000.
B) $35,000.
C) $15,000.
D) $25,000.

Answer 1

The net financing cash flows can be calculated by subtracting the net operating cash flows and net investing cash flows from the total change in cash. In this case, the net financing cash flows is $35,000. The correct answer is B).

Step-by-step explanation:

To find the net financing cash flows, we can use the formula:

Net Financing Cash Flows = Total Change in Cash - Net Operating Cash Flows - Net Investing Cash Flows

Substituting the given values:

Net Financing Cash Flows = $44,000 - $22,000 - (-$13,000)

Simplifying the equation:

Net Financing Cash Flows = $44,000 - $22,000 + $13,000 = $35,000

The net financing cash flows is $35,000, so the correct answer is B) $35,000.