Can you explain how to get the beginning cash balance and the ending cash balanc

Question

Can you explain how to get the beginning cash balance and the ending cash balance. Also how to (b) Compute these cash-basis ratios: (Round each answer to 2 decimal places, e.g. 2.10.) Thank you. Here is a comparative balance sheet for Padgett Company: PADGETT COMPANY Comparative Balance Sheet December 31 Assets 2012 2011 Cash $81,030 $24,420 Accounts receivable 94,350 84,360 Inventories 188,700 209,790 Land 83,250 111,000 Equipment 288,600 222,000 Accumulated Depreciation (73,260) (35,520) Total $662,670 $616,050 Liabilities and Stockholders

Explanation / Answer

Are you looking for cash flow.
Indirect method

Operating Activities
103,000 Net Income
+ 34,000 Depreciation (66,000 - 32,000)
- 9,000 increase in A/R
+ 19,000 decrease in inventory
- 8,000 decrease in A/P
= $139,000 cash flow from operating activities

Investing Activities
+ 25,000 sale of land
- 60,000 equipment purchase
= - $35,000cash flowfrom investing activities

Financing Activities
- 45,000 dividends
- 50,000 redemption of bonds
+ 42,000 stock issue
= - $53,000 cash flow from financing activities
139,000 - 35,000 - 53,000 = $51,000 total cash flow

22,000 beginning cash balance
+ 51,000
= 73,000 ending cash balance

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