Hard problem with ending cash balance and beginning cash balance

Net sales 500 (useless)

Increase in acc. receivable : 20

Decrease in acc. payable 40

Increase in inventory 30

sale of common stock: 100

repayment of debt: 10

Depreciation: 2

Net income: 100

interest expense on debt: 5

CFO is: for me it is 12 … IFRS firm choosing interest paying on CFF : 100+2-30-40-20=12

a) 10

b) 12

c) 92

d) 192

CFI: 0

CFF: for me it is 100-10-5= 85

a) 90

b) 98

c) 110

d) 198

Then… change in cash its 97…

If the ending cash balance is 200, the beginning cash balance was:

a) 90

b) 98

c) 110

d) 198

cannot be right this question does it? beginning cash balance must be 103 for it to be 200… what do you think guys?

Where’d you get the 2?

my bad… it is depreciation expense, already edited it

Is this US GAAP or IFRS?

Under US GAAP, interest paid is a CFO outflow, not a CFF outflow.

doesnt specify in the problem but I took it as a IFRS firm, so interest paid can go to CFF, what do you say about the problem? its wrong the part of ending cash balance?

If you treat interest paid as a CFF outflow, then you have to remove it as an outflow from CFO, leaving you with CFO = 17. As that isn’t an option, it appears that interest paid is a CFO outflow. In that case, CFF = 100 − 10 = 90.