Question

New England Co. had net cash provided by operating activities of $351 ,000; net cash used by investingactivities of $420,000; and cash provided by financing activities of $250,000. New England's cash balancewas $27 ,000 on January 1. During the year, there was a sale of land that resulted in a gain of $25,000 andproceeds of $40,000 were received from the sale. What was New England's cash balance at the end of theyear?a. $27,000b. $40,000c. $208,000d. $248,000

Answer 1

Answer:

d. $248,000

Explanation:

beginning cash balance            27,000

operating activities 351,000

investing activities (420,000)

financing                 250,000

cash generate during the year 181,000

ending cash balance                208,000

Note:

The information of the sale of land is contained with the investment activities.

The proceeds from sales are in the operating activities.

We just need to calculate using the total for each activity.