Asked by Sonia Franco on Jun 29, 2024
Verified
The current period statement of cash flows includes the following: 
The cash balance at the end of the period is
A) $45,000
B) $635,000
C) $355,000
D) $125,000
Current Period
Refers to the present accounting period under consideration, which could be a month, quarter, or year, depending on the context.
Statement of Cash Flows
A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, categorizing cash flows into operating, investing, and financing activities.
Cash Balance
The amount of cash held by a company at any given time, as recorded in its financial statements.
- Understand the concept of cash flows from operating, investing, and financing activities.
Verified Answer
HB
Hallie BrownJul 01, 2024
Final Answer :
C
Explanation :
The cash balance at the beginning of the period is given as $250,000. The net increase in cash for the period is calculated as ($550,000 - $250,000 - $50,000) = $250,000. Therefore, the cash balance at the end of the period is $250,000 + $250,000 = $500,000. However, the period statement also shows that there was an outstanding bank loan of $145,000 repaid during the period. Therefore, the final cash balance at the end of the period is $500,000 - $145,000 = $355,000. Hence, the correct answer is option C.
Learning Objectives
- Understand the concept of cash flows from operating, investing, and financing activities.