Question

The Hill Company's statement of cash flows contained the following: net cash provided from operating activities of $42,500; net cash used by investing activities of $29,300; and net cash provided by financing activities of $15,000. Hill Company's cash increased by $_____ during the year.

Answer 1

Hill Company's cash increased by $28,200 during the year, which is the sum of net cash flows from operating activities, net cash used by investing activities, and net cash provided by financing activities.

Step-by-step explanation:

To determine how much Hill Company's cash balance increased during the year, we add together the net cash flows from operating, investing, and financing activities. So, Hill Company's cash increased by the sum of the following:

• Net cash provided from operating activities: $42,500
• Net cash used by investing activities: -$29,300
• Net cash provided by financing activities: $15,000

By calculating the sum of these amounts, ($42,500 - $29,300 + $15,000), we find that Hill Company's cash increased by $28,200 during the year.