ABC Inc. has $100 in cash on its balance sheet at the end of 2009. During 2010, 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 2010?
A)$75
B)$140
C)$225
D)-$25

Question

Quizplus · Accepted Answer

ABC Inc.'s cash at the end of 2010 is calculated as follows: Starting cash of $100 + $450 from issuing stock - $40 for reducing notes payable - $750 for purchasing fixed assets + $315 from operating activities = $75.

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