The bottom line of the Cash Flow Statement is the net change in cash.

• A. Net Income
• B. Net cash from Operating Activities
• C. Net Change in Cash
• D. Ending Cash Balance

Answer: (C)

The bottom line on the cash flow statement represents how much cash the company gained or lost during the period. This is found by combining the net cash provided by or used in operating activities, investing activities, and financing activities—the three sections of the statement. When you add those nets together, you get the net change in cash for the period, which is the bottom line. The ending cash balance is the cash on hand at the period’s end, calculated by starting cash plus that net change; it’s a final figure tied to the bottom line, not the bottom line itself. Net income, by contrast, comes from the income statement and affects cash flows, but it isn’t the bottom line of the cash flow statement.