Which of the following equations define the relationship betweena firm's statement of cash flows and...

Which of the following equations define the relationship between a firm's statement of cash flows and its balance sheet?

Cash end of period = Cash beginning of period + CFO + CFI + CFF

Cash end of period = Cash beginning of period + Net Income + Dividends

Cash end of period = Cash beginning of period + Net Income - Dividends

Cash end of period = Cash beginning of period - CFO - CFI - CFF

Expert Solution

The statement of cash flow is divided in to three parts i.e. cash flow from operating activities, cash flow from investing activities and cash flow from financing activities.

Cash at the end of period is derived as follows:

= Cash at beginning of period + cash flow from operating activities + Cash flow from Investing activities + Cash flow from financing activities.

So, the correct answer is option of Cash end of period = Cash beginning of period + CFO + CFI + CFF

jeff jeffy answered 2 years ago

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