The information below was taken from the 2018 annual report of Jena Corp.
$\begin{array}{|l|c|c|c|}
\hline& \mathbf{2 0 1 8} & \mathbf{2 0 1 7} & \mathbf{2 0 1 6} \
\hline \text { Beginning cash balance } & \$ 12,000 & ? & \$ 5,000 \
\hline \text { Net cash flow from operating activities } & 7,987 & ? & 9,100 \\hline \text { Net cash flow from investing activities } & 2,450 & 4,330 & ? \
\hline \text { Net cash flow from financing activities } & ? & (9,612) & (7,500) \
\hline \text { Ending cash balance } & \$ 11,000 & ? & \$ 12,500\
\hline
\end{array}$
Which of the following is the missing amount for the net cash flow from financing activities for 2018?
A)($22,437)
B)($11,437)
C)($563)
D)($14,450)

Question

The information below was taken from the 2018 annual report of Jena Corp.
$\begin{array}{|l|c|c|c|} 
\hline& \mathbf{2 0 1 8} & \mathbf{2 0 1 7} & \mathbf{2 0 1 6} \
\hline \text { Beginning cash balance } & \$ 12,000 & ? & \$ 5,000 \
\hline \text { Net cash flow from operating activities } & 7,987 & ? & 9,100 \\hline \text { Net cash flow from investing activities } & 2,450 & 4,330 & ? \
\hline \text { Net cash flow from financing activities } & ? & (9,612) & (7,500) \
\hline \text { Ending cash balance } & \$ 11,000 & ? & \$ 12,500\
\hline
\end{array}$
Which of the following is the missing amount for the net cash flow from financing activities for 2018?
A)($22,437)
B)($11,437)
C)($563)
D)($14,450)

Quizplus · Accepted Answer

The net change in cash for 2018 can be calculated by subtracting the beginning cash balance from the ending cash balance: $11,000 - $12,000 = -$1,000. This net change is the sum of the net cash flows from operating, investing, and financing activities. Given the net cash flow from operating activities is $7,987 and from investing activities is $2,450, the net cash flow from financing activities can be calculated as: -$1,000 = $7,987 + $2,450 + Financing Activities. Solving for Financing Activities gives: Financing Activities = -$1,000 - $7,987 - $2,450 = -$11,437.

The Information Below Was Taken from the 2018 Annual Report