What is Crane's cash balance at the end of its first year?

Question

Quizplus · Accepted Answer

At the end of the first year, the cash balance would be the sum of the cash balance from the beginning of the year and the net cash inflow from operating activities, minus any cash outflow for investing and financing activities.

Opening cash balance = $100,000

Net cash inflow from operating activities = $450,000 - $200,000 - $150,000 = $100,000

Cash outflow for investing activities = $100,000

Cash outflow for financing activities = $51,600

Therefore,

Closing cash balance = $100,000 + $100,000 - $100,000 - $51,600 = $349,400

Hence, the correct choice is A.

What Is Crane's Cash Balance at the End of Its