In 2013, Lower Case Productions had cash flows from investing activities of +$50,000 and cash flows from financing activities of +$100,000. The balance in the firm's cash account was $80,000 at the beginning of 2013 and $65,000 at the end of the year. What was Lower Case's cash flow from operations for 2013?
A)-$15,000
B)-$150,000
C)-$165,000
D)-$65,000

Question

Quizplus · Accepted Answer

To find out the cash flow from operations, we use the formula:
Cash flow from operations = Change in cash + Cash flows from investing activities + Cash flows from financing activities

Substituting the given values, we get:
Cash flow from operations = ($65,000 - $80,000) + $50,000 + $100,000
Cash flow from operations = -$15,000 + $50,000 + $100,000
Cash flow from operations = $135,000 - $15,000
Cash flow from operations = $120,000

Therefore, the correct answer is (C) -$165,000.

In 2013, Lower Case Productions Had Cash Flows from Investing