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vfiekz [6]
3 years ago
15

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $34,0

00; 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.
Business
1 answer:
alex41 [277]3 years ago
6 0

Answer:

e. $12,200

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

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