Norbert Company reports the following net cash in its statement of cash flows: net inflow from operating activities: $200; net outflow from investing activities: $220; net inflow from financing activities: $130. The current year beginning balance of cash was $80. The cash balance at the end of the year will be:

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Answer:

$190

Explanation:

‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.

Given,

Net inflow from operating activities (A) = $200

Net outflow from investing activities (B) = ($220)

Net inflow from financing activities (C) = $130

Cash at beginning of year = $80

Now,

Net increase/decrease in cash = (A) + (B) + (C)

Net increase/decrease in cash = $200 + ($220) + $130

Net increase/decrease in cash = $110

Cash at the end of year = Net increase/decrease in cash + Cash at beginning of year

Cash at the end of year = $110 + $80

Cash at the end of year = $190

Cash flow statement has been attached below:

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