On January 1, Year 1, Moore, a fast-food company, had a balance in its Cash account of $45,800. During the Year 1 accounting period, the company had (1) net cash inflow from operating activities of $24,800, (2) net cash outflow for investing activities of $16,000, and (3) net cash outflow from financing activities of $6,800. Required a. Prepare a statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

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Britney Vaughn

Business

29 March, 17:06

On January 1, Year 1, Moore, a fast-food company, had a balance in its Cash account of $45,800. During the Year 1 accounting period, the company had (1) net cash inflow from operating activities of $24,800, (2) net cash outflow for investing activities of $16,000, and (3) net cash outflow from financing activities of $6,800. Required a. Prepare a statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

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Izaiah Warren · Answer 1

Cash inflow from operating activities:

Net cash inflow from operating activities $24,800

Cash outflow for investing activities:

Net cash outflow for investing activities - $16,000

Cash outflow from financing activities:

Net Cash outflow from financing activities - $6,800

Net Change $2000

Add Starting Balance + $45,800

Ending Balance $47,800

Explanation:

Cash flow is the statement which involve the cash inflow and outflow and group them into operating, investing and financial activities. The ending balance then is calculated by adding the net change of above activities plus beginning balance.

Statement of cash flow:

Cash inflow from operating activities:

Net cash inflow from operating activities $24,800

Cash outflow for investing activities:

Net cash outflow for investing activities - $16,000

Cash outflow from financing activities:

Net Cash outflow from financing activities - $6,800

Net Change $2000

Add Starting Balance + $45,800

Ending Balance $47,800