Question

In 2014, Elbert Corporation had net cash provided by operating activities of 531,000; net cash used by investing activities of 963,000; and net cash provided by financing activities of 585,000. At January 1, 2014, the cash balance was 333,000. Compute the December 31 2014, cash.

Answer 1

December 31 2014, cash = $486,000

Step-by-step explanation:

To solve this, we will classify the particulars as either income or expenditure,and find the difference. This is shown below:

Particulars income($) expenditure($)

operating activities 531,000 -

investing activities - 963,000

financing activities 585,000 -

January 1 cash balance 333,000 -

Total 1,449,000 963,000

∴ net cash available on December 31 2014 = Total income - expenditure

= 1,449,000 - 963,000 = $486,000