Question

Bagrov Corporation had a net decrease in cash of $14,500 for the current year. Net cash used in investing activities was $56,500 and net cash used in financing activities was $42,500. What amount of cash was provided (used) in operating activities?
a. $(14,500) used.
b. $(84,500) used.
c. $84,500 provided.
d. $113,500 provided.
e. $(113,500) used.

Answer 1

Answer:

c. $84,500 provided

Explanation:

Net decrease in cash = $14,500

Net cash used in investing activities = $56,500

Net cash used in financing activities = $42,500

Amount of cash was provided (used) in operating activities

= - $14,500 + $56,500 + $42,500

= $84,500

This is positive,hence provided. Th right answer is c. $84,500 provided