If $40,000 was generated from operations, $9,000 was used for investing activities, and $4,000 was provided by financing activities, the cash balance would:
A) increase by $35,000.
B) decrease by $35,000.
C) increase by $40,000.
D) increase by $31,000.

Question

Quizplus · Accepted Answer

The cash balance would increase by $35,000 because the net cash provided by operating activities ($40,000) minus the cash used in investing activities ($9,000) plus the cash provided by financing activities ($4,000) equals $35,000.

If $40,000 Was Generated from Operations, $9,000 Was Used for Investing