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: $109,000
Net cash used for investing activities: $(114,500)
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?
A) $23,700
B) $10,500
C) $13,200
D) $5500

Question

Quizplus · Accepted Answer

To find the ending cash balance, we need to add the net cash provided by operating activities and net cash provided by financing activities and deduct the net cash used for investing activities.

Ending cash balance = Beginning cash balance + Net cash provided by operating activities + Net cash provided by financing activities - Net cash used for investing activities

= $13,200 + $109,000 + $16,000 - $(114,500)

= $23,700

Therefore, the ending cash balance is $23,700, and the best choice is A.

Specialty Auto Parts Company Uses the Indirect Method to Prepare