In 2018, 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 2018 and $105,000 at the end of the year. What was Upper Crust's cash flow from operations for 2018?
A) $15,000
B) $105,000
C) $400,000
D) $415,000

Question

Quizplus · Accepted Answer

The cash flow from operations can be calculated by understanding the net change in cash and adding back the cash flows from investing and financing activities. The net change in cash is the ending cash balance ($105,000) minus the beginning cash balance ($90,000), which equals $15,000. Adding back the cash flows from investing ($250,000) and financing activities ($150,000) gives us $15,000 + $250,000 + $150,000 = $415,000.

In 2018, Upper Crust Had Cash Flows from Investing Activities