Specialty Auto Parts Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2018: Net cash provided by operating activities: $108,000
Net cash used for investing activities: $(118,500)
Net cash provided by financing activities: $16,000
If the cash balance at the beginning of the year was $13,200, what is the ending cash balance?

Question

Quizplus · Accepted Answer

The ending cash balance is calculated by adding the net cash provided by operating activities, net cash used for investing activities, and net cash provided by financing activities to the beginning cash balance: $108,000 - $118,500 + $16,000 + $13,200 = $18,700.

Specialty Auto Parts Company Uses the Indirect Method to Prepare