Question

Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activities of $2,000. If the beginning and ending cash balances for the company were $4,000 and $11,000, What was the net cash change from investing activities?

Answer 1

Net decrease in cash from Investing activities of $1,000

Step-by-step explanation:

Net increase in cash from operating activities = $10,000

Net decrease in cash from financing activities = $2,000

Beginning cash balances = $4,000

Ending cash balances = $11,000

net cash change from investing activities = ?

Using following formula we can calculate net cash change from investing activities

Ending Cash Balance = Net Cash Flow + Beginning Cash Balance

Ending Cash Balance = ( Net cash flow from operating activities + Net cash flow from Investing activities + Net cash flow from Financing activities ) + Beginning Cash Balance

$11,000 = ( 10,000 + Net cash flow from Investing activities + (-2,000)) + 4,000

$11,000 = 8,000 + Net cash flow from Investing activities + 4,000

$11,000 = 12,000 +

Net cash flow from Investing activities = $11,000 - $12000

Net cash flow from Investing activities = -$1,000

So, Net decrease in cash from Investing activities of $1,000