Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $28,000;net cash used in investing activities was $10,000 and net cash used in financing activities was $12,000.If the beginning cash balance is $5,000,what is the ending cash balance?
A)$55,000.
B)$45,000.
C)$31,000.
D)$6,000.
E)$11,000.

Question

Quizplus · Accepted Answer

The ending cash balance is calculated by adding the net cash flows to the beginning cash balance: $5,000 (beginning balance) + $28,000 (operating) - $10,000 (investing) - $12,000 (financing) = $11,000.

Stormer Company Reports the Following Amounts on Its Statement of Cash