Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010
-For the year ended December 31, 2008, a corporation had cash flow from operating activities of -$10,000, cash flow from investment activities of $4,000, and cash flow from financing activities of $9,000. The Statement of Cash Flows would show a
A) net decrease of $3,000 in cash and marketable securities.
B) net decrease of $5,000 in cash and marketable securities.
C) net increase of $3,000 in cash and marketable securities.
D) net increase of $5,000 in cash and marketable securities.

Question

Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010 
-For the year ended December 31, 2008, a corporation had cash flow from operating activities of -$10,000, cash flow from investment activities of $4,000, and cash flow from financing activities of $9,000. The Statement of Cash Flows would show a
A) net decrease of $3,000 in cash and marketable securities. 
B) net decrease of $5,000 in cash and marketable securities. 
C) net increase of $3,000 in cash and marketable securities. 
D) net increase of $5,000 in cash and marketable securities.

Quizplus · Accepted Answer

The net cash flow is calculated by summing the cash flows from operating, investing, and financing activities: -$10,000 + $4,000 + $9,000 = $3,000, indicating a net increase in cash and marketable securities.

Table 4.1 Ruff Sandpaper Co