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2 February, 15:00

Delaware Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2019: Net cash provided by operating activities: $45,000 Net cash used for investing activities: ($29,000) Net cash provided by financing activities: $2,000 What is the net change in cash during the year?

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  1. 2 February, 15:03
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    The net change in cash during the period is $18,000

    Explanation:

    The net change in cash during the period is computed as:

    Net change in cash during the period = Net Cash provided by the operating activities - Net Cash used by the investing activities + Net Cash provided by the financing activities

    where

    Net Cash provided by the operating activities is $45,000

    Net Cash used by the investing activities is ($29,000)

    Net Cash provided by the financing activities is $2,000

    Putting the values above:

    = $45,000 - $29,000 + $2,000

    = $16,000 + $2,000

    = $18,000
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