Bagrov Corporation had a net decrease in cash of $10,000 for the current year.Net cash used in investing activities was $52,000 and net cash used in financing activities was $38,000.What amount of cash was provided (used)in operating activities?
A)$100,000 provided.
B)$(100,000)used.
C)$80,000 provided.
D)$(80,000)used.
E)$(10,000)used.

Question

Quizplus · Accepted Answer

To find the amount of cash provided (used) in operating activities, we can use the indirect method of the cash flow statement.

Net decrease in cash = Cash flows from operating activities + Cash flows from investing activities + Cash flows from financing activities

Substituting the given values, we get:

-$10,000 = Cash flows from operating activities - $52,000 - $38,000

Simplifying, we get:

Cash flows from operating activities = $80,000 provided

Therefore, the correct answer is choice C.

Bagrov Corporation Had a Net Decrease in Cash of $10,000