Question

In 2020, Monty Corporation had net cash provided by operating activities of $486,000, net cash used by investing activities of $976,000, and net cash provided by financing activities of $627,000. At January 1, 2020, the cash balance was $348,000. Compute December 31, 2020, cash. Cash, December 31, 2020

Answer 1

Monty Corporation

Computation of Cash at December 31, 2020:

$485,000.

Step-by-step explanation:

a) Data and Calculations:

Net cash provided by operating activities = $486,000

Net cash used by investing activities = (976,000)

Net cash provided by financing activities = $627,000

Net cash inflow = $ 137,000

January 1, 2020 Cash balance 348,000

December 31, 2020 Cash balance $485,000

b) The above implies that Monty made more (cash inflow) cash of $137,000 between January 1, 2020 and December 31, 2020. This is added to the January 1, 2020 cash balance to arrive at the December 31, 2020 cash balance.