The statement of cash flows shows the following information: The beginning cash was $14,000. What is the amount of cash at the end of the period?

Question

The statement of cash flows shows the following information:  The beginning cash was $14,000. What is the amount of cash at the end of the period?

Quizplus · Accepted Answer

The statement of cash flows does not directly provide the ending cash balance, but it does show the changes in cash during the period. By adding the net increase/decrease in cash to the beginning balance, we can calculate the ending cash balance. Without knowing the net increase/decrease in cash, we can only guess. However, the only choice that is reasonably close to the beginning balance of $14,000 is D) $19,200, which implies a net increase in cash of $5,200.

The Statement of Cash Flows Shows the Following Information