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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.

Respuesta :

abiolataiwo2015

Answer:

A) $4,000

Explanation:

Calculation for the beginning cash balance

Using this formula

Beginning balance=ending balance-increase in cash

Let plug in the formula

Beginning balance=$24,000 -$20,000

Beginning balance=$4,000

Therefore the beginning cash balance was:$4,000

Tundexi

The beginning cash balance will be $4,000

Calculation of Net increase in cash

Particulars                                                               Amount

Net cash used operating activities                      $18,000

Net cash used in investing activities                   ($10,000)

Net cash provided by financing activities            $12,000

Net increase in cash                                             $20,000

Beginning cash balance = Year-end cash balance - Net increase in cash

Beginning cash balance = $24,000 - $20,000

Beginning cash balance = $4,000

Hence, the beginning cash balance will be $4,000

Therefore, the Option A is correct.

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