Westmoreland Corporation prepared its statement of cash flows for the year. The following information is taken from that statement: Net cash provided by operating activities $ 16,300 Net cash provided by investing activities 5,100 Net cash flow used in financing activities (11,500) Cash balance, end of year 13,600 What is the cash balance at the beginning of the year?

The cash balance at the beginning of the year is $3,700.

Explanation:

To arrive at the cash at the beginning of the year, we can draft the following extract of the statement of cash flows:

Westmoreland Corporation

Statement of cash flows

Net cash provided by operating activities $16,300 - - - (a)

Net cash provided by investing activities 5,100 - - - (b)

Net cash flow used in financing activities (11,500) - - - (c)

Net increase in cash (a+b+c) $9,900

Cash balance, beginning of the year X

Cash balance, end of year $13,600

Net increase in cash ($9,900) + X = $13,600

Cash balance, beginning of the year (X) = $13,600 - $9,900 = $3,700.