"On its statement of cash flows, Goodwin Industries shows cash USED by investing activities of $300,000, cash PROVIDED by financing activities of $175,000, and a change in cash for the year of $425,000. How much cash was provided by operating activities

$550,000.00  

Explanation:

The formula for change in cash in cash during the year can be used to determine the amount of cash provided by operating activities as shown below:

change in cash=cash provided by operations-cash used by investing activities+cash provided by financing activities

change in cash is $425,000

cash provided by operations is represented by x

cash used by investing activities is $300,000

cash provided by financing activities is $175,000

$425,000=x- $300,000+$175,000

x=$425,000+$300,000-$175,000

x=$550,000.00  

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