26. The Laurel Company reported the following data for last year: Decrease in th

ID: 2398704 • Letter: 2

Question

26. The Laurel Company reported the following data for last year: Decrease in the Cash account........................$25,000 Net cash provided by operating activities..............20,000 Net cash provided by investing activities.............15,000 Based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be: A. 2000 b. (30,000) c. (60000) d. (8000)
26. The Laurel Company reported the following data for last year: Decrease in the Cash account........................$25,000 Net cash provided by operating activities..............20,000 Net cash provided by investing activities.............15,000 Based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be: A. 2000 b. (30,000) c. (60000) d. (8000)
26. The Laurel Company reported the following data for last year: Decrease in the Cash account........................$25,000 Net cash provided by operating activities..............20,000 Net cash provided by investing activities.............15,000 Based solely on this information, the net cash provided (used) by financing activities on the statement of cash flows would be: A. 2000 b. (30,000) c. (60000) d. (8000)

Explanation / Answer

Correct Answer (C ) $ (60000)

Explanation

Calculation of Cash used in Financing Activities

Cash From operating Activity

$ 20,000.00

Cash from Investing Activity

$ 15,000.00

Cash used in Financing Activity (Balancing Figure)

$ (60,000.00)

Net Decrease in Cash

$ (25,000.00)