# If beginning cash equaled \$10,000 and ending cash equals \$19,000, which is true? A. Operating cash flow 9,000; Investing cash flow (3,500); Financing cash flow (2,500) B. Operating cash flow 4,500; Investing cash flow 9,000; Financing cash flow (4,500) C. Operating cash flow 2,000; Investing cash flow (13,000); Financing cash flow 2,000 D. none of the above

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 16, Problem 14MC
Textbook Problem
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## If beginning cash equaled \$10,000 and ending cash equals \$19,000, which is true?A. Operating cash flow 9,000; Investing cash flow (3,500); Financing cash flow (2,500)B. Operating cash flow 4,500; Investing cash flow 9,000; Financing cash flow (4,500)C. Operating cash flow 2,000; Investing cash flow (13,000); Financing cash flow 2,000D. none of the above

To determine

Concept introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

• Cash flows from operating activities
• Cash Flows from investing activities
• Cash flows from financing activities
(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To choose:

The true statement.

### Explanation of Solution

If the beginning cash is \$10,000 and ending cash is \$19,000, it means there must be a net increase in cash by \$9000. In option B, the net increase in cash is 4500+9000-4500 = \$9,000. So, option B is correct.

A. If the beginning cash is \$10,000 and ending cash is \$19,000, it means there must be a net increase in cash by \$9000. In option B, the net increase in cash is 9000-3500-2500 = \$3,000...

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