Analysis reveals that a company had a net increase in cash of $22,420 for the current year. Net cash provided by operating activities was $20,200, net cash used in investing activities was $11,100 and net cash provided by financing activities was $13,320. If the year-end cash balance is $27,300, the

beginning cash balance was:

$4,880

Explanation:

The Cashflow Statement shows just how much raw cash a company has and so is very important in Accounting as it shows the company how much it can actually spend.

The beginning Cashflow can be calculated using the formula,

Beginning Cash Balance = Ending Cash Balance - Net Increase in CASH for the year

Beginning Cash Balance = 27,300 - 22,420

Beginning Cash Balance = $4,880

Normally this would be the formula,

Beginning Cash Balance = Ending Cash Balance + Net Outflows - Net Inflows.

Because however, you were already given the Net Increase in cash, use that instead.

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