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:

MIRR

Modified Internal Rate of Return, a financial measure used to evaluate the attractiveness of investments, taking into account the cost of capital and the reinvestment rate.

Cost of Capital

A minimum profit rate a business has to achieve on its ventures to sustain its market price and appeal to investors.

MIRR

Modified Internal Rate of Return, a financial measure used to evaluate the profitability of investments, adjusting for differences in cash flow timing and reinvestment rates.

Cost of Capital

The rate of return that a company needs to earn on its investment projects to maintain its market value and satisfy its investors and creditors.