partin corporations cash and cash equivalents consist of cash and marketable securities. last year the…
partin corporations cash and cash equivalents consist of cash and marketable securities. last year the companys cash account increased by $31,000 and its marketable securities account decreased by $22,000. net cash provided by (used in) operating activities was $108,000. net cash provided by (used in) financing activities was $(70,000). based on this information, the net cash provided by (used in) investing activities on the statement of cash flows was\n$38,000.\n($29,000).\n($38,000).\n$9,000.
Answer
Explanation:
Step1: Calculate net change in cash and cash equivalents
The cash account increased by $31,000 and marketable securities (cash equivalent) decreased by $22,000. So net change in cash and cash equivalents is $31,000 - $22,000 = $9,000.
Step2: Use cash flow equation
The formula for cash flow is: Net cash from operating activities + Net cash from investing activities + Net cash from financing activities = Net change in cash and cash equivalents. Let ( I ) be net cash from investing activities. We know operating is $108,000, financing is -$70,000, and net change is $9,000. So: ( 108000 + I + (-70000) = 9000 ) Simplify: ( 38000 + I = 9000 ) Then ( I = 9000 - 38000 = -29000 )