Kaze Corporation's cash and cash equivalents consist of cash and marketable securities.Last year the company's cash account increased by $25,000 and its marketable securities account decreased by $15,000.Net cash provided by (used in) operating activities was $38,000.Net cash provided by (used in) investing activities was $9,000.Based on this information, the net cash provided by (used in) financing activities on the statement of cash flows was:

A) $(37,000) .
B) $37,000 .
C) $(47,000) .
D) $47,000 .

Question

Angelica Camacho · Accepted Answer

Final Answer : A, Explanation :  To calculate the net cash provided by (used in) financing activities, we need to use the formula:Net cash provided by (used in) financing activities = (Change in Cash + Change in Marketable Securities) - (Net cash provided by (used in) operating activities + Net cash provided by (used in) investing activities)Given information:Change in Cash = $25,000 (increase)Change in Marketable Securities = $15,000 (decrease)Net cash provided by (used in) operating activities = $38,000 (provided)Net cash provided by (used in) investing activities = $9,000 (provided)Using the formula:Net cash provided by (used in) financing activities = ($25,000 - $15,000) - ($38,000 + $9,000) = $10,000 - $47,000 = -$37,000Therefore, the answer is A) $37,000. Net change in cash and cash equivalents = Net cash provided by (used in)operating activities + Net cash provided by (used in)investing activities + Net cash provided by (used in)financing activities$25,000 - $15,000 = $38,000 + $9,000 + Net cash provided by (used in)financing activities$10,000 = $47,000 + Net cash provided by (used in)financing activitiesNet cash provided by (used in)financing activities = $10,000 - $47,000 = ?$37,000

Definitions

Learning Objectives

Learning Objectives

Related questions