In 2013, Upper Crust had cash flows from investing activities of ($250,000) and cash flows from financing activities of ($150,000). The balance in the firm's cash account was $90,000 at the beginning of 2013 and $105,000 at the end of the year. What was Upper Crust's cash flow from operations for 2013?

Question

Quizplus · Accepted Answer

To calculate the cash flow from operations, we can use the formula:
Cash flow from operations = Change in cash + Cash flows from investing activities + Cash flows from financing activities
We know the change in cash was $105,000 - $90,000 = $15,000. We also know the cash flows from investing activities and financing activities:
Cash flows from investing activities = ($250,000)
Cash flows from financing activities = ($150,000)
Substituting these values in the formula:
Cash flow from operations = $15,000 + ($250,000) + ($150,000)
Cash flow from operations = $415,000
Therefore, the correct answer is D.

In 2013, Upper Crust Had Cash Flows from Investing Activities