Clark Company Uses the Indirect Method to Prepare Its Statement

question 37

Multiple Choice

Clark Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015. The beginning balance in the Cash account was $2,500
Net cash provided by operating activities: $39,000
Net cash used for investing activities: $(25,000)
Net cash provided by financing activities: $1,200
Which of the following statements is true?

• A)The statement of cash flows will show ending cash balance of $15,200.
• B)The statement of cash flows will show total net cash flows of $64,000 positive.
• C)The statement of cash flows will show total net cash flows of $15,200 negative.
• D)The statement of cash flows will show ending cash balance of $17,700.

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Definitions:

Experimental Group

In experimental research, the group of participants that receives the treatment or intervention under study, contrasted with the control group.

Data Collection

The systematic gathering of information from various sources to analyze and derive conclusions in research or studies.

Observational Studies

Research methods in which the investigator passively observes and records behavior without interfering with the subjects.

Psychologists

Professionals in the field of psychology who study mental processes and behaviors, often providing therapy and counseling.