At the beginning of the year, Gonzales Corporation had $100,000 in cash. During
ID: 2766023 • Letter: A
Question
At the beginning of the year, Gonzales Corporation had $100,000 in cash. During the year, the company undertook a major expansion. From the statement of cash flows, operating activities generated $300,000 of cash, while investing activities required cash expenditures of $800,000. At the end of the year, the company's cash position was $50,000. What was the net cash provided by the company's financing activities?
$350,000
$400,000
$300,000
$450,000
$500,000
$350,000
$400,000
$300,000
$450,000
$500,000
Explanation / Answer
Begining Cash flow = 100,000
Cash flow after operating activities = 100,000 + 300,000 = 400,000
Cash flowafter investing activities = 400,000 - 800,000 = -400,000
Since the closing Cash flow was 50,000. the cash flow from financing activities should be 400,000 + 50,000 = 450,000
Hence Cash flow from fiancing activities = $450,000 (Option D)
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