ABC Inc. has $100 in cash on its balance sheet at the end of 2017. During 2018, the firm issued $450 in common stock, reduced its notes payable by $40, purchased fixed assets in the amount of $750, and had cash flows from operating activities of $315. How much cash did ABC Inc. have on its balance sheet at the end of 2018?
A) $75
B) $140
C) $225
D) −$25

Question

Quizplus · Accepted Answer

ABC Inc.'s cash at the end of 2018 is calculated as follows: Starting cash ($100) + cash from issuing stock ($450) - cash used to reduce notes payable ($40) - cash used to purchase fixed assets ($750) + cash from operating activities ($315) = $75.

ABC Inc Has $100 in Cash on Its Balance Sheet at at the End