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, respectively, what is the net cash change from investing activities?
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 change in cash is calculated as the ending cash balance minus the beginning cash balance, which is $11,000 - $4,000 = $7,000. The net increase from operating activities is $10,000, and there's a net decrease from financing activities of $2,000. To find the net change from investing activities, subtract the net changes from operating and financing activities from the total net change in cash: $7,000 - $10,000 + $2,000 = -$1,000, indicating an outflow or decrease of $1,000 from investing activities.

Jackson Company Had a Net Increase in Cash from Operating