At the beginning of the year, Gonzales Corporation had $100,000 in cash. During

Question

At the beginning of the year, Gonzales Corporation had $100,000 in cash. During the year, the company undertook a major expansion. From the statement of cash flows, operating activities generated $300,000 of cash, while investing activities required cash expenditures of $800,000. At the end of the year, the company's cash position was $50,000. What was the net cash provided by the company's financing activities?

$350,000

$400,000

$300,000

$450,000

$500,000

$350,000

$400,000

$300,000

$450,000

$500,000

Explanation / Answer

Begining Cash flow = 100,000

Cash flow after operating activities = 100,000 + 300,000 = 400,000

Cash flowafter investing activities = 400,000 - 800,000 = -400,000

Since the closing Cash flow was 50,000. the cash flow from financing activities should be 400,000 + 50,000 = 450,000

Hence Cash flow from fiancing activities = $450,000 (Option D)

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