Trinity Coatings Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for 2018: The beginning balance in the Cash account was $2900.
Net cash provided by operating activities: $40,000
Net cash used for investing activities: $(25,500)
Net cash provided by financing activities: $1700
The statement of cash flows will show ________.
A) ending cash of $16,200
B) net cash provided by operating activities $42,900
C) net cash provided by investing and financing activities $(23,800)
D) ending cash of $19,100

Question

Quizplus · Accepted Answer

To calculate the ending balance of cash, we need to add the beginning balance of $2900 with the net cash provided by operating activities of $40,000, and the net cash provided by financing activities of $1700. This gives us a total of $43,600. We then need to subtract the net cash used for investing activities of $(25,500) from this total. This gives us an ending cash balance of $19,100. Therefore, option D is the correct answer.

Trinity Coatings Company Uses the Indirect Method to Prepare Its