Cash flow and Balance Sheet
(Monkey, 35
Points)
on 1/3/13 at 11:20pm
Can someone please help me with this question, I would really appreciate it.
When building a financial statement model, the total cash balance calculated on the cash flow statement (cash from operating + financing + investing activities):
1. Must equal cash flow balances inputted on the balance sheet
2. Will always exceed cash flow balances inputted on the balance sheet by cash from operating activities
3. Will always trail cash flow balances inputted on the balance sheet by cash from operating activities
4. None of the above
Thanks!





The cash balance at the
The cash balance at the bottom (which is the difference in cash balances) must equal #1 - difference in cash balances on BS between the two periods.
Does that make sense?
e.g.
Cash Balances
2011: 20
2012: 40
CFS: CFO, 10 + CFI, 5 + CFF, 5 = 20 net cash flow --> 20 + prior 2011 balance = 40
yes thanks everyone i got it.
yes thanks everyone i got it. #1 was correct