The Statement of Cash Flows for the current year contained the following:

The change in cash for the current year was an increase of $14,000.
-Use the information above to answer the following question.What is the amount of cash flows from (used in)financing activities?

Question

The Statement of Cash Flows for the current year contained the following:
  
The change in cash for the current year was an increase of $14,000.
-Use the information above to answer the following question.What is the amount of cash flows from (used in)financing activities?

Quizplus · Accepted Answer

To calculate the cash flows from financing activities, we need to look at the financing section of the statement of cash flows. We are not given that section in the information provided, but we are given the net change in cash, which is $14,000. If the cash balance increased, then the company must have received more cash than it paid out. The only option that shows a positive net cash inflow is C, $49,000, which includes the $14,000 increase in cash plus $35,000 of cash inflows from financing activities. Therefore, the answer is C.

The Statement of Cash Flows for the Current Year Contained