Clark Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015. Net cash provided by operating activities: $39,000
Net cash used for investing activities: $(25,000)
Net cash provided by financing activities: $1,200
How much was the net change in cash during the year?
A)$(15,200)
B)$37,800
C)$15,200
D)$(13,500)

Question

Quizplus · Accepted Answer

The net change in cash during the year can be calculated using the formula: 
Net change in cash = Net cash provided by operating activities + Net cash used for investing activities + Net cash provided by financing activities
Net change in cash = $39,000 - $25,000 + $1,200 = $15,200 
Therefore, the correct answer is C) $15,200.

Clark Company Uses the Indirect Method to Prepare Its Statement