Question

Analysis reveals that a company had a net increase in cash of

$21,980 for the current year. Net cash provided by operating

activities was $19,800; net cash used in investing activities

was $10,900 and net cash provided by financing activities

was $13,080. If the year-end cash balance is $26,700, the

beginning cash balance was:

Answer 1

Answer:

The multiple choices are as follows:

$4,720.

$17,260.

$48,680.

$43,960.

$42,960.

The beginning cash balance was $4,720  

Explanation:

The formula for closing cash balance can be used to determine the opening cash balance as shown thus:

closing cash balance=net increase in cash+opening balance of cash

by arranging the equation

opening cash balance =closing cash balance-net increase in cash

closing cash balance is $26,700

net increase in cash is $21,980

opening cash balance=$26,700-$21,980=$4,720