Question

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $34,000; net cash used in investing activities was $12,400 and net cash used in financing activities was $15,600. If the beginning cash balance is $6,200, what is the ending cash balance?

a. $68,200.
b. $55,800.
c. $37,000.
d. $6,000.
e. $12,200.

Answer 1

e. $12,200

Step-by-step explanation:

In order to calculate the ending cash balance, we must first assess the net increase or net decrease in the balance shown below:

Net Cash flow provided by Operating activities $34,000

Net Cash flow used in Investing activities -$12,400

Net Cash flow used in Financing activities -$15,600

Net increase (decrease) in cash for the year is $6,000

Now the ending balance of cash would be

= Net increase in cash + beginning cash balance

= $6,000 + $6,200

= $12,200