Question

Crane Company reports: Cash provided by operating activities $ 310000 Cash used by investing activities 120000 Cash provided by financing activities 149000 Beginning cash balance 98000 What is Crane’s ending cash balance?

Answer 1

Answer:

$437,000

Explanation:

We first, find the net cash flow for the current period, and then, add the cash balance for the period immediately before.

Net cash flow for current period:

Cash provided by operating activities $310,000

Cash used by investing activities ($120,000) - we substract this because the cash was "used", that is to say, it was spent.

Cash provided by financing activities $149,000

Net cash flow: $339,000

Ending cash balance = Net cash flow + beginning cash balance

                                   = $339,000 + 98,000

                                   = $437,000