Question

For the current year, Davis Corporation’s statement of cash flows reveals the following information: Net cash flows from operating activities: $ 48,000 Net cash flows from investing activities: $ 12,000 Net cash flows from financing activities: $ 30,000 Cash at the end of the year: $ 210,000 What was the company’s cash balance at the beginning of the year? Multiple Choice $90,000 $120,000 $210,000

Answer 1

What was the company’s cash balance at the beginning of the year?

$120,000

Step-by-step explanation:

$ 48.000 - Net cash flows from operating activities

$ 12.000 - Net cash flows from investing activities:

$ 30.000 - Net cash flows from financing activities

$ 210.000 - Cash at the end of the year

The difference between the cash at the end of the year and the cash flow during the year due to activites, gives the balance at the beginning.