A firm reported ($ in millions) net cash inflows (outflows) as follows: operatin

Question

A firm reported ($ in millions) net cash inflows (outflows) as follows: operating $65, investing ($202), and financing $357. The beginning cash balance was $252. What was the ending cash balance?

On December 31, 2016, Wellstone Company reported net income of $71,000 and sales of $214,000. The company also reported beginning and ending accounts receivable at $16,500 and $26,000, respectively. Wellstone will report cash collected from customers in its 2016 statement of cash flows (direct method) in the amount of:

Explanation / Answer

1)

Ending cash balance = Cash Provided by Operating Activity - Cash used in investing Activity + Cash Provided by Financing Activity + beginning cash balance

Ending cash balance = 65 - 202 + 357 + 252

Ending cash balance = $ 472 Million

2)

Answer

Wellstone will report cash collected from customers in its 2016 statement of cash flows (direct method) in the amount of $ 204500

Cash collections from customers Sales revenue           214,000.00 Add : Beginning Account Recievable              16,500.00 Less :Ending Account Recievable              26,000.00 Cash collections from customers           204,500.00

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