Summing the Statement. The cash balance increased by ($ 20,000), cash flow from financing activities was negative
Question:
Summing the Statement. The cash balance increased by \(\$ 20,000\), cash flow from financing activities was negative by \(\$ 15,000\), and cash flow from operations was positive by \(\$ 50,000\).
\section*{Required:}
Which of the following is (are) correct?
(a) Cash paid for purchases of investing assets must have exceeded cash from sales of investing assets by \(\$ 15,000\).
(b) The company must have been profitable.
(c) Depreciation expense must have been greater than net income.
(d) Cash flow from investing activities must have been negative by \(\$ 55,000\).
(e) The sum of operating, financing, and investing activities was \(\$ 20,000\).
Step by Step Answer:
Managerial Accounting
ISBN: 9780538842822
9th Edition
Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson