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) $31,000.
B) $45,000.
C) $6,000.
D) $55,000.
E) $11,000.

Question

Quizplus · Accepted Answer

The ending cash balance is calculated by adding the net cash flows from all activities 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