Stormer Company Reports the Following Amounts on Its Statement of Cash

question 78

Multiple Choice

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $28,000;net cash used in investing activities was $10,000 and net cash used in financing activities was $12,000.If the beginning cash balance is $5,000,what is the ending cash balance?

• A)$55,000.
• B)$45,000.
• C)$31,000.
• D)$6,000.
• E)$11,000.

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Definitions:

Financing Section

Part of the cash flow statement that records cash activities related to funding the company, such as obtaining loans or issuing stock.

Statement of Cash Flows

A financial statement summarizing the total cash earnings from a company's operational activities and investments, alongside the expenses and investments paid out over a specific time frame.

Accounting Equation

A fundamental principle of accounting stating that assets equal liabilities plus owners' equity (Assets = Liabilities + Equity).

Liabilities

Financial obligations or debts owed by a business or individual to external parties or entities.