Presented Below Are Items from Joplin Shoes' Statement of Cash

question 65

Essay

Presented below are items from Joplin Shoes' statement of cash flows for 2017.
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$\begin{array}{lr}\text { Cash flows provided by operating activities } & \$ 75,000 \\\text { Cash flows provided by financing activities } & 115,000 \\\text { Cash at the beginning of the year } & 60,000 \\\text { Cash flows used by investing activities } & (100,000)\end{array}$ A)Determine whether Joplin Shoes' cash increased or decreased during the year.
B)How much cash does Joplin Shoes have at the end of 2016?
C)What is the purpose of the statement of cash flows?

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Definitions:

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, suggesting that exchange rates should adjust to equalize the price of identical goods in different countries.

Exchange Rate

The worth of a currency when converted into another, establishing the amount of one currency that can be swapped for a different one.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much one currency can buy of another.

Japanese Yen

The official currency of Japan, used as a medium of exchange and store of value.