Question

Lohmeyer Corporation reports:

Cash provided by operating activities $320,000
Cash used by investing activities 110,000
Cash provided by financing activities 140,000
Beginning cash balance 90,000
What is Lohmeyer's ending cash balance?

Answer 1

$440,000

Step-by-step explanation:

Data provided

Cash provided by operating activities = $320,000

Cash used by investing activities = $110,000

Cash provided by financing activities = $140,000

Beginning cash balance = $90,000

The computation of ending cash balance is shown below:-

= Beginning cash balance + Cash provided by operating activities + Cash provided by financing activities - Cash used by investing activities

= $90,000 + $320,000 + $140,000 - $110,000

= $550,000 - $110,000

= $440,000

Therefore for computing the ending cash balance we applied the above formula.