Question

The net cash flow provided by operating activities is $48,042, the net cash flow used in investing activities is $22,331, and the net cash flow used in financing activities is $28,597. if the beginning cash account balance is $12,383, what is the ending cash account balance?

O $41,776
O $54,159
O ($2,886)
O $9,497

Answer 1

The ending cash account balance is calculated by starting with the beginning balance and adjusting it for cash flows from operating, investing, and financing activities. The end result after applying the given figures is an ending cash balance of $9,497.

Step-by-step explanation:

The ending cash account balance is determined by adjusting the beginning balance with the net cash flows from three categories of activities: operating, investing, and financing. The calculation is straightforward: we start with the beginning cash balance, add net cash flow from operating activities, subtract net cash flow used in investing activities, and finally subtract net cash flow used in financing activities.

Here's the calculation:
Ending Cash Balance = Beginning Cash Balance + Net Cash from Operating Activities - Net Cash Used in Investing Activities - Net Cash Used in Financing Activities.
Plugging in the numbers:
Ending Cash Balance = $12,383 + $48,042 - $22,331 - $28,597
Ending Cash Balance = $9,497.