In 2018, 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 2018 and $1,025,000 at the end of the year. Calculate Usher Sports Shop's cash flow from operations for 2018.

Question

Quizplus · Accepted Answer

The cash flow from operations can be calculated using the formula: Change in cash = Cash flow from operations + Cash flow from investing activities + Cash flow from financing activities. The change in cash is the ending cash balance ($1,025,000) minus the beginning cash balance ($980,000), which equals $45,000. Plugging in the given numbers: $45,000 = Cash flow from operations - $2,150,000 - $3,219,000. Solving for Cash flow from operations gives $5,414,000.

In 2018, Usher Sports Shop Had Cash Flows from Investing