Question

During 2016, Rock Company's cash balance increased from $79,000 to $91,300. Rock's net cash flow from operating activities was $37,300 and its net cash flow from financing activities was $11,100. How much was Rock's net cash flow from investing activities?

Answer 1

Answer:

Rock's net cash flow from investing activities was -$36,100

Explanation:

The amount of cash increased during 2016:

$91,300 - $79,000 = $12,300

Cash increased during 2016 = Net cash flow from operating activities + Net cash flow from financing activities + Net cash flow from investing activities

Net cash flow from investing activities = Cash increased during 2016 - (Net cash flow from operating activities + Net cash flow from financing activities) = $12,300 - ($37,300 + $11,100) = -$36,100