Question

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?

Answer 1

Answer:

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