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:

Estimated

An approximate calculation or judgment of the value, number, quantity, or extent of something, based on available data.

Natural Rate

Typically refers to the natural rate of unemployment, which is the rate of unemployment expected when the economy is at full employment, without cyclical unemployment.

Unemployment Rate

The percentage of unemployed persons in the labor force who are vigorously trying to secure a job.

Cyclical Unemployment

Unemployment caused by a downturn in economic activity or recession, affecting the overall demand for labor.