B rady Company reported cash from operating activities of $6 million and investing activities of negative $7 million. What was the cash from financing activities if the beginning cash balance was $1.5 million and the
Ending cash balance was $3.1 million?

Question

B rady Company reported cash from operating activities of $6 million and investing activities of negative $7 million. What was the cash from financing activities if the beginning cash balance was $1.5 million and the
Ending cash balance was $3.1 million?
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Quizplus · Accepted Answer

The formula for the change in cash balance is:

Ending cash balance - Beginning cash balance = Cash from operating activities + Cash from investing activities + Cash from financing activities

Thus,

3.1 million - 1.5 million = 6 million + (-7 million) + Cash from financing activities

1.6 million = Cash from financing activities

Therefore, the answer is choice B) $1.6 million.

B Rady Company Reported Cash from Operating Activities of $6