Delaware Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2019: Net cash provided by operating activities: $45,000 Net cash used for investing activities: ($29,000) Net cash provided by financing activities: $2,000 What is the net change in cash during the year?

Question

Business

Alana Robinson

22 February, 18:47

Delaware Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2019: Net cash provided by operating activities: $45,000 Net cash used for investing activities: ($29,000) Net cash provided by financing activities: $2,000 What is the net change in cash during the year?

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Jovany Wise · Answer 1

The net change in cash during the period is $18,000

Explanation:

The net change in cash during the period is computed as:

Net change in cash during the period = Net Cash provided by the operating activities - Net Cash used by the investing activities + Net Cash provided by the financing activities

where

Net Cash provided by the operating activities is $45,000

Net Cash used by the investing activities is ($29,000)

Net Cash provided by the financing activities is $2,000

Putting the values above:

= $45,000 - $29,000 + $2,000

= $16,000 + $2,000

= $18,000