Question

1. 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.

Answer 1

Answer: $2400 million

Explanation:

Net cash inflow from operations = $4,100 million

Add: Net cash inflow for financing = $3,700 million

Less: Net cash outflow for investing = $6,200 million

Net cash flow during the year will be:

= $4100m + $3700m - $6200m

= $1,600 million

Add: Beginning cash balance= $800 million

Therefore, the cash on the balance sheet at February 2, 20x2 will be:

= $1600 million + $800 million

= $2,400 million