Statement of Cash Flows 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?
A)$15,000
B)$105,000
C)$400,000
D)$415,000

Question

Quizplus · Accepted Answer

To find the cash flow from operations, we need to use the information given in the statement of cash flows, specifically the cash flows from investing and financing activities.

We can use the following formula:

Cash flow from operations = Change in cash + Cash flows from investing activities + Cash flows from financing activities

We know that the change in cash was an increase of $15,000 ($105,000 - $90,000), cash flows from investing activities were ($250,000), and cash flows from financing activities were ($150,000).

Plugging in these values:

Cash flow from operations = $15,000 - $250,000 - $150,000 = $415,000

Therefore, the correct answer is D) $415,000, which represents Upper Crust's cash flow from operations for 2013.

Statement of Cash Flows in 2013,Upper Crust Had Cash Flows