at the end of the previous year, a companys balance sheet reports cash of $30,000. for the current year, the…

at the end of the previous year, a companys balance sheet reports cash of $30,000. for the current year, the companys statement of cash flows reports operating cash inflows of $90,000, investing outflows of $110,000, and financing inflows of $40,000. what amount of cash will be reported in the current years balance sheet? multiple choice $90,000 $50,000 $20,000 $120,000

at the end of the previous year, a companys balance sheet reports cash of $30,000. for the current year, the companys statement of cash flows reports operating cash inflows of $90,000, investing outflows of $110,000, and financing inflows of $40,000. what amount of cash will be reported in the current years balance sheet? multiple choice $90,000 $50,000 $20,000 $120,000

Answer

Explanation:

Step1: Calculate net cash flow

Net cash flow = Operating cash inflows - Investing outflows+Financing inflows Net cash flow = $90000 - 110000 + 40000$ Net cash flow = $20000$

Step2: Calculate ending - cash balance

Ending cash balance = Beginning cash balance+Net cash flow Beginning cash balance = $30000$, Net cash flow = $20000$ Ending cash balance = $30000+20000 = 50000$

Answer:

$50000$ (corresponding to the second multiple - choice option)