Trinity Coatings Company Uses the Indirect Method to Prepare Its

question 121

Multiple Choice

Trinity Coatings Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2018: The beginning balance in the Cash account was $2700.
Net cash provided by operating activities: $41,000
Net cash used for investing activities: $(28,000)
Net cash provided by financing activities: $1800
The statement of cash flows will show ________.

• A) ending cash of $14,800
• B) net cash provided by operating activities $42,900
• C) net cash provided by investing and financing activities $(23,800)
• D) ending cash of $17,500

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Definitions:

Reducing Tillage

Agricultural practice of minimizing soil disturbance, aimed at preserving soil health and reducing erosion.

Managing Irrigation

The process of applying controlled amounts of water to plants at needed intervals, focusing on conserving water and ensuring its efficient use in agriculture.

Soil Covered

The top layer of the earth's surface composed of mineral particles, organic matter, water, and air, which supports plant life.

Desertification

The process by which fertile land becomes desert, typically as a result of drought, deforestation, or inappropriate agriculture.