Question

The Statement of Cash Flow The following cash flow information was taken from The General Electric Company (GE) annual report. Compute the missing values in the table (amounts are in millions). Year 3 Year 2 Year 1 Cash, beginning balance $Answer 91,968 $75,984 $Answer 98,508 Cash flow from operating activities 225,846 218,904 175,374 Cash flow from investing activities Answer (283,722) (230,484) (131,058) Cash flow from financing activities (36,714) Answer (27,564) (21,792) Cash, ending balance $70,806 $91,968 $Answer 75,984

Answer 1

	Compute the missing values
		Year 3	Year 2	Year 1
	Cash, beginning balance	$91,968	$75,984	$53,460
	Cash flow from operating activities	$225,846	$218,904	$175,374
	Cash flow from investing activities	($210,294)	($230,484)	($131,058)
	Cash flow from financing activities	($36,714)	$27,564	($21,792)
	Cash, ending balance	$70,806	$91,968	$75,984
1	Cash ending balance Year 1 = Cash beginning balance year 2
	Thus ending balance is $75984
2	Cash beginning balance Year 1 = Ending balance-net change in cash flow
	Ending balance	$75,984
	Net change (175374-131058-21792)	$22,524
	Beginning balance	$53,460
3	Cash Flow from financing activities Year 2
	Cash Flow from financing activities = Ending balance-(Cash flow from operating activities+Cash flow from investing
	activities+beginning balance)
	Ending Balance Year 2		$91,968
	Beginning Balance Year 2	$75,984
	Cash flow from operating activities	$218,904
	Cash flow from investing activities	($230,484)
			$64,404
	Cash flow from financing activities		$27,564
4	Beginning Balance Year 3
	Beginning Balance Year 3 = Ending Balance Year 2
	Ending balance Year 2	$91,968
5	Cash Flow from investing activities Year 3
	Cash Flow from investing activities = Ending balance-(Cash flow from operating activities+Cash flow from financing
	activities+beginning balance)
	Ending Balance Year 3		$70,806
	Beginning Balance Year 3	$91,968
	Cash flow from operating activities	$225,846
	Cash flow from financing activities	($36,714)
			$281,100
	Cash flow from financing activities		($210,294)