Delaware Coatings Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for the year 2019: Net cash provided by operating activities: $44,000
Net cash used for investing activities: $(27,000)
Net cash provided by financing activities: $2000
What is the net change in cash during the year?
A) $(19,000)
B) $42,000
C) $19,000
D) $(17,000)

Question

Quizplus · Accepted Answer

The net change in cash during the year can be calculated as follows:
Net cash provided by operating activities - Net cash used for investing activities + Net cash provided by financing activities
= $44,000 - ($27,000) + $2,000
= $19,000
Therefore, the net change in cash during the year is $19,000. Option C is correct.

Delaware Coatings Company Uses the Indirect Method to Prepare Its