If a company reported net income for the year of $160,000,cash from operating activities of $105,000,cash flows from financing activities of $225,000,and cash used in investing activities of $450,000,what was their change in cash for the year?
A)$120,000 decrease
B)$170,000 decrease
C)$40,000 increase
D)$65,000 decrease

Question

Quizplus · Accepted Answer

The change in cash is calculated by adding net income to cash from operating activities, and then subtracting cash used in investing activities and cash flows from financing activities. In this case, the change in cash is $160,000 + $105,000 - $450,000 - $225,000 = -$120,000.

If a Company Reported Net Income for the Year of $160,000,cash