Question

Jackson Company had a net increase in cash from operating activities of $9,000 and a net decrease in cash from financing activities of $2,500. If the beginning and ending cash balances for the company were $4,000 and $13,000, then the net cash change from investing activities was:

A. $6,500
B. $11,500
C. $5,500
D. $10,500

Answer 1

The net cash change from investing activities is $5,500.

Step-by-step explanation:

The net cash change from investing activities can be calculated by subtracting the net increase in cash from operating activities and the net decrease in cash from financing activities from the net change in cash. In this case, the net change in cash is $13,000 - $4,000 = $9,000. Therefore, the net cash change from investing activities is $9,000 - $9,000 - (-$2,500) = $5,500.