At the end of 2004 Lehnhoff Inc had 75 million in cash Durin

At the end of 2004, Lehnhoff Inc. had $75 million in cash. During 2005, the following events occurred: · Cash flow from Lehnhoff\'s operating activities totaled $325 million. · Lehnhoff issued $500 million in common stock. · Lehnhoff\'s notes payable decreased by $100 million. · Lehnhoff purchased fixed assets totaling $600 million. How much cash did Lehnhoff Inc. have at the end of 2005?

a. $200 Million

b. $50 Million

c. $1.4 Billion

d. $100 Million

Solution

Answer is a. $ 200 million Explanation: Amount in $ million Cash flows from Operating activitities 325 Cash flows from Investing activities: -600 Purchase of Fixed assets Cash flows from financing activities: Issue of common stock 500 Repayment of notes payable -100 400 Net increase in cash 125 Add: Beginning Balance of cash 75 Ending balance of cash 200