The current period statement of cash flows includes the following: The cash balance at the end of the period is
A) $45,000
B) $635,000
C) $355,000
D) $125,000

Question

The current period statement of cash flows includes the following:​  The cash balance at the end of the period is
A) $45,000 
B) $635,000 
C) $355,000 
D) $125,000

Quizplus · Accepted Answer

The cash balance at the beginning of the period is given as $250,000. The net increase in cash for the period is calculated as ($550,000 - $250,000 - $50,000) = $250,000. Therefore, the cash balance at the end of the period is $250,000 + $250,000 = $500,000. However, the period statement also shows that there was an outstanding bank loan of $145,000 repaid during the period. Therefore, the final cash balance at the end of the period is $500,000 - $145,000 = $355,000. Hence, the correct answer is option C.

The Current Period Statement of Cash Flows Includes the Following:​

The Current Period Statement of Cash Flows Includes the Following: