Jackson Company had a net increase in cash from operating activities of $11,400 and a net decrease in cash from financing activities of $4,000. If the beginning and ending cash balances for the company were $5,000 and $10,600, respectively, what is the net cash change from investing activities?
A) An outflow or decrease of $1,800.
B) An inflow or increase of $4,000.
C) An inflow or increase of $1,800.
D) Zero.

Question

Quizplus · Accepted Answer

The net change in cash is calculated as the ending cash balance minus the beginning cash balance, which is $10,600 - $5,000 = $5,600. Given a net increase from operating activities of $11,400 and a net decrease from financing activities of $4,000, the net change from investing activities can be found by subtracting these amounts from the total net change in cash: $5,600 - $11,400 + $4,000 = -$1,800, indicating an outflow or decrease from investing activities.

Jackson Company Had a Net Increase in Cash from Operating