Cash flow question
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!
I think balance sheet cash is equal to change in cash from cash flow + previous fiscal years cash balance
but i still cant chose one of the choices
Let's use years FY11 and FY12 as an example.
On the SCF for FY12, Ending Cash (what goes to the FY12 Balance Sheet) = Beginning Cash (FY11 Cash Balance) + Net Change in Cash
Net Change in Cash = CF from Operations + CF from Investing + CF from Financing + FX impacts
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