Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activities of $2,000.If the beginning and ending cash balances for the company were $4,000 and $11,000,then net cash change from investing activities was:
A)an outflow or decrease of $1,000.
B)an inflow or increase of $2,000.
C)an inflow or increase of $1,000.
D)zero.

Question

Quizplus · Accepted Answer

The net cash change is calculated as the sum of cash flows from operating, investing, and financing activities. The total change in cash is $11,000 (ending) - $4,000 (beginning) = $7,000. Given a $10,000 increase from operating and a $2,000 decrease from financing, the change from investing must be a decrease of $1,000 to result in the net $7,000 increase.

Jackson Company Had a Net Increase in Cash from Operating