Analysis Reveals That a Company Had a Net Increase in Cash

question 120

Multiple Choice

Analysis reveals that a company had a net increase in cash of $20,000 for the current year.Net cash provided by operating activities was $18,000;net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000.If the year-end cash balance is $24,000,the beginning cash balance was:

• A)$4,000.
• B)$16,000.
• C)$44,000.
• D)$40,000.
• E)$39,000.

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Definitions:

Rate Of Return

A measure of the profit or loss of an investment over a given period, typically expressed as a percentage of the investment's initial cost.

Average Rate Of Return

The mean annual growth rate of an investment over a specified period of time, expressed as a percentage.

Excess Funds

Resources or capital that exceed the immediate operational or investment needs of an entity.

Rate Of Interest

The slice of a loan attracting interest fees for the borrower, typically outlined as an annual percentage of the still owing loan amount.