Clark Coatings Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for the year 2015: Net cash provided by operating activities: $39,000
Net cash used for investing activities: $(25,000)
Net cash provided by financing activities: $1,200
How much was the net change in cash during the year?

Question

Quizplus · Accepted Answer

The net change in cash during the year can be calculated by adding net cash provided by operating activities ($39,000) to net cash provided by financing activities ($1,200) and subtracting net cash used for investing activities ($25,000). Thus, the net change in cash during the year is $15,200 ([$39,000 + $1,200] - $25,000)

Clark Coatings Company Uses the Indirect Method to Prepare Its