Current Attempt in Progress

Gary King and Debra Smith are examining the following summary of cash flows for Cullumber Company for the year ended January $31,2027.$

Inflows

Gary claims that this statement shows that Cullumber had a superb first year, with cash increasing $\backslash (\backslash$$ $38,188\backslash ).$ Debra replies that it was not a superb first year. Rather, she says, the year was an operating failure and that $\backslash (\backslash$$ $38,188\backslash )$ is not the actual increase in cash. The cash balance at the beginning of the year was $\backslash (\backslash$$ $140,850\backslash ).$