On January 1, 2018, Moore, a fast-food company, had a balance in its Cash account of $54,000. During the 2018 accounting period, the company had (1) net cash inflow from operating activities of $35,600, (2) net cash outflow for investing activities of $43,000, and (3) net cash outflow from financing activities of $24,500.

Required:

Prepare a statement of cash flows.

Question

Business

Dexter Simpson

2 November, 11:52

On January 1, 2018, Moore, a fast-food company, had a balance in its Cash account of $54,000. During the 2018 accounting period, the company had (1) net cash inflow from operating activities of $35,600, (2) net cash outflow for investing activities of $43,000, and (3) net cash outflow from financing activities of $24,500.

Required:

Prepare a statement of cash flows.

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Answers (1)

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Bingo · Answer 1

Net cash flow as at the year end = $22,100

Explanation:

The statement of cash flows for Moore shall be calculated as follows:

Cash balance as at January 1, 2018 = $54,000

Cash inflow from operating activities = $35,600

Cash outflow from investing activities = ($43,000)

Cash outflow from financing activities = ($24,500)

Net cash flow as at the year end = $22,100