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.

---

Definitions:

Frontal Sinus

Air-filled cavities in the skull, located above the eyes within the frontal bone, which lighten the skull and resonate the voice.

Ethmoidal Sinus

Air-filled spaces located within the ethmoid bone between the nose and eyes, part of the paranasal sinuses.

Maxillary Sinus

The maxillary sinus is one of the four pairs of paranasal sinuses that are located within the bones of the face and cheeks, specifically within the maxilla or upper jaw bone.

Lordosis

A curvature of the spine that results in an exaggerated inward curve of the lower back.