In 2011, Usher Sports Shop had cash flows from investing activities of ($2,150,000) and cash flows from financing activities of ($3,219,000). The balance in the firm's cash account was $980,000 at the beginning of 2011 and $1,025,000 at the end of the year. Calculate Usher Sports Shop's cash flow from operations for 2011.

Question

Quizplus · Accepted Answer

The cash flow from operations can be calculated using the following formula:Cash flow from operations = Beginning cash balance + Cash flows from investing activities + Cash flows from financing activities + Ending cash balanceSubstituting the given values into the formula, we get:Cash flow from operations = $980,000 + ($2,150,000) + ($3,219,000) + $1,025,000= $5,414,000Therefore, the correct answer is B) $5,414,000.

In 2011, Usher Sports Shop Had Cash Flows from Investing