In its fiscal year ended January 28, 2017 balance sheet, Big Lots, Inc., reported cash and cash equivalents at the start of the year of $54,144 thousand. By the end of the year, the cash and cash equivalents had decreased to $51,164 thousand. The company's statement of cash flows reported cash from operating activities of $311,925 thousand, cash from financing activities of $(230,204) thousand.
What amount did the company report for cash from investing activities?
A) $ 122,391 thousand cash inflow
B) $ 7,966 thousand cash outflow
C) $ 84,701 thousand cash inflow
D) $ 84,701 thousand cash outflow
E) None of the above.

Question

Quizplus · Accepted Answer

The amount reported for cash from investing activities can be calculated by understanding the overall change in cash and cash equivalents, and then accounting for the known cash flows from operating and financing activities. The change in cash and cash equivalents is $51,164 thousand - $54,144 thousand = $(2,980) thousand. Given cash from operating activities of $311,925 thousand and cash from financing activities of $(230,204) thousand, the cash from investing activities can be calculated as: Change in cash = Cash from operating activities + Cash from financing activities + Cash from investing activities. Thus, $(2,980) thousand = $311,925 thousand + $(230,204) thousand + Cash from investing activities. Solving for Cash from investing activities gives $(2,980) thousand = $81,721 thousand + Cash from investing activities, which means Cash from investing activities = $(2,980) thousand - $81,721 thousand = $(84,701) thousand, indicating an outflow.

In Its Fiscal Year Ended January 28, 2017 Balance Sheet