Clark Company Uses the Indirect Method to Prepare Its Statement

question 146

Multiple Choice

Clark Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for the year 2015. Net cash provided by operating activities: $39,000
Net cash used for investing activities: $(25,000)
Net cash provided by financing activities: $1,200
How much was the net change in cash during the year?

• A)$(15,200)
• B)$37,800
• C)$15,200
• D)$(13,500)

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Definitions:

JIT

Just-In-Time is a management strategy that aligns raw-material orders from suppliers directly with production schedules to minimize inventory costs.

Supply-Chain Strategy

A plan for managing all aspects of a product's supply chain, from raw materials to distribution, to maximize efficiency, reduce costs, and enhance competitiveness.

Forward Contracts

Financial derivatives involving an agreement to buy or sell an asset at a predetermined future date and price.