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15 July, 06:53

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $34,000; net cash used in investing activities was $12,400 and net cash used in financing activities was $15,600. If the beginning cash balance is $6,200, what is the ending cash balance?

a. $68,200.

b. $55,800.

c. $37,000.

d. $6,000.

e. $12,200.

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  1. 15 July, 06:54
    0
    e. $12,200

    Explanation:

    In order to calculate the ending cash balance, we must first assess the net increase or net decrease in the balance shown below:

    Net Cash flow provided by Operating activities $34,000

    Net Cash flow used in Investing activities - $12,400

    Net Cash flow used in Financing activities - $15,600

    Net increase (decrease) in cash for the year is $6,000

    Now the ending balance of cash would be

    = Net increase in cash + beginning cash balance

    = $6,000 + $6,200

    = $12,200
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