Question

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $30,500; net cash used in investing activities was $11,000 and net cash used in financing activities was $13,500. If the beginning cash balance is $5,500, what is the ending cash balance

Answer 1

Answer:

$38,500

Explanation:

Sheridan's ending cash balance can be calculated as;

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

= $5,500 + $30,500 + $13,500 - $11,000

= $38,500

Therefore, the ending cash balance is $38,500