When a statement of cash flows is prepared, the sum of the three major components (operating activities, investing activities, financing activities) will add up to:
1. The ending cash balance 2. Net profit for the period 3. The ending working capital 4. The change in the cash account during the year 5. The opening cash balance
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Accounting quiz! Please help?
Actually the answer is "The change in the cash account during the year". You sum of those three components tells you the change in the cash balance, then you add it to the opening cash balance to get end of year cash balance.
Ending working capital would be current assets minus current liabilities.
Accounting quiz! Please help?
Nr. 3: The end-working capital
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