Use the following financial data on Enterprise:
a. Sale of equipment $32,000
b. Loss on equipment sale $9,000
c. Dividends paid $12,500
d. Purchase of an office suite $104,000
e. Common stock repurchase $45,000
f. Dividends received from investments $8,500
g. Interest received on Treasury bonds $1,200
h. Supplier accounts paid $3,700
i. Cash collection from customers $14,200
j. Ending cash balance $98,000
$198,300
In the above question, the beginning cash balance of the firm was ________.:
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A. B. C. D.B
Note that the loss on equipment is a non-cash event. Using the direct method, beginning cash balance + net cash inflow = ending cash balance Hence, beginning balance = 98,000 - (32,000 -12,500 -104,000 - 45,000 + 8,500 +1,200 - 3,700 + 14,200) = $207,300.