The statement of cash flows for Goal Corporation, a U.S.retailer, for the year ended February 2, 20x2 (fiscal 20x1), showed a net cash inflow from operations of $4,100 million, a net cash outflow for investing of $6,200 million, and a net cash inflow for financing of $3,700 million.The balance sheet at February 3, 20x1, showed a balance in cash of $800 million.Compute the amount of cash on the balance sheet at February 2, 20x2.
A)$800 million.
B)$1,600 million.
C)$2,400 million.
D)$3,200 million.
E)$4,700 million.

Question

Quizplus · Accepted Answer

The net change in cash is the sum of the net cash flows from operations, investing, and financing. In this case, the net change in cash is $4,100 million + (-$6,200 million) + $3,700 million = -$1,400 million. The balance in cash at February 3, 20x1, was $800 million. Therefore, the balance in cash at February 2, 20x2, is $800 million - $1,400 million = $2,400 million.

The Statement of Cash Flows for Goal Corporation, a U