The net change represents the increase or decrease in liquidity during a period and should serve to reconcile the change from the cash balances at the beginning of the period to those at the end of the period” (Accounting Principles, 2012, section 1.1). The following information can be obtained from the financial statement. • The cash flow statement is used to determine the company's sources of cash flow and where the money was spent in the last year. In this case, non-monetary items are not included in the calculation in order to evaluate the real financial health of the company. o The result of operating activities is a surplus of $180,000 in cash. This was invested to acquire a fixed capital of $100,000 for future expansion purposes. Additionally, to satisfy shareholders, $100,000 in dividends were paid. The company has an opening remaining balance of $70,000, which resulted in an ending cash balance of