During the year, cash increased by $300 million. Investing and financing activities created positive cash flow totaling $500 million. What were net cash flows from operating activities in the statement of cash flows?

Question

Quizplus · Accepted Answer

The net cash flow from operating activities can be calculated by subtracting the cash flows from investing and financing activities from the total increase in cash. Since cash increased by $300 million and investing and financing activities contributed $500 million, the operating activities must have resulted in an outflow of $200 million ($300 million - $500 million = -$200 million).

During the Year, Cash Increased by $300 Million