Maze Company\'s cash and cash equivalents consist of cash and marketable securit
ID: 2432691 • Letter: M
Question
Maze Company's cash and cash equivalents consist of cash and marketable securities. Last year the company's cash account increased by $24,000 and its marketable securities account decreased by $16,000. Cash provided by operating activities was $40,000. Net cash used in financing activities was $39,000. Based on this information, the net cash flow from investing activities on the statement of cash flows was:
a net $9,000 increase.
a net $23,000 increase.
a net $39,000 increase.
a net $7,000 increase.
a.a net $9,000 increase.
b.a net $23,000 increase.
c.a net $39,000 increase.
d.a net $7,000 increase.
Explanation / Answer
Change in Cash & Cash Equivalents: Increase in Cash 24000 Decrease in Marketable Securities -16000 Net Change in Cash & Cash Equivalents 8000 A Cash Provided by Operating Activities 40000 B Cash Provided/Used by Investing Activities X (to find) C Cash Used by Financing Activities -39000 A+B+C Net Change in Cash & Cash Equivalents 8000 40000+X-39000 8000 1000+X 8000 Cash Provided by Investing Activities 7000 Answer is a Net $7000 Increase