Question

Jackson Company had a net increase in cash from operating activities of $9,800 and a net decrease in cash from financing activities of $3,700. If the beginning and ending cash balances for the company were $4,800 and $14,600, then net cash change from investing activities was:____________-

Answer 1

Answer:

$3,700

Explanation:

The opening cash balance added to the net cash flows from all activities namely; Operating, investing and financing activities is equivalent to the closing cash balance.

As such given;

net increase in cash from operating activities = $9,800 and

net decrease in cash from financing activities = $3,700

beginning cash balance = $4,800

ending cash balances = $14,600

Therefore,

$4,800 + $9,800 - $3,700 + y = $14,600

y = $14,600 + $3,700 - $4,800 - $9,800

y = $3,700

where y is the net cash change from investing activities.