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, then net cash change from investing activities was: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

Archer

Business

3 March, 19:50

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, then net cash change from investing activities was: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.

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Answers (1)

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Harvey · Answer 1

correct option is a. an outflow or decrease of $1,000

Explanation:

given data

cash from operating activities = $10,000

Ending cash = $11,000

beginning cash = $4,000

cash from financing activities = $2,000

solution

we get here cash from investing activities from the equation that is express as

Ending cash - beginning cash = cash from operating activities + cash from investing activities + cash from financing activities ... 1

put here value and we get

$11,000 - $4,000 = $10,000 + cash from investing activities + $2,000

solve it we get

cash from investing activities = $1000

so

correct option is a. an outflow or decrease of $1,000