Answer Happy

During the current year, Rock Company's cash balance increased from $79,000 to $91,300.
Rock's net cash flow from operating activities was $37,300 and its net cash flow from financing
activities was $11,100. How much was Rock's net cash flow from investing activities?

A) A net cash flow of $42,900.
B) A net cash flow of ($36,100).
C) A net cash flow of $60,700.
D) A net cash flow of ($60,700).
Answer: B
Explanation: The change in cash is ending balance $91,300 − beginning balance $79,000 =
$12,300.
$12,300 = Net cash flow from operating activities ($37,300) +/− Net cash flow from investing
activities (X) + Net cash flow from financing activities ($11,100).
$12,300 = $37,300 +/− X + $11,100.
Solve for X = Investing activities = −$36,100.