Question

The current period statement of cash flows includes the following: Cash balance at the beginning of the period $310,000 Net cash flow from operating activities 185,000 Net cash flow used for investing activities 43,000 Net cash flow used for financing activities 97,000

The cash balance at the end of the period is
a. $45,000
b. $355,000
c. $635,000
d. $125,000

Answer 1

The cash balance at the end of the period is b. $355,000

Step-by-step explanation:

Step 1 Calculate the Cash flow Changes during the year: Open a Cash flow Statement

Net cash flow from operating activities 185,000

Net cash flow used for investing activities (43,000)

Net cash flow used for financing activities (97,000)

Cash flow Changes during the year 45,000

Step 2 Prepare a Reconciliation of Cash and Cash Equivalent Balances at the end of the period

Cash balance at the beginning of the period 310,000

Cash flow Changes during the year 45,000

cash balance at the end of the period 355,000