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30 October, 15:58

In 2008, Upper Crust had cash flows from investing activities of - $270,000 and cash flows from financing activities of - $163,000. The balance in the firm's cash account was $86,000 at the beginning of 2008 and $118,000 at the end of the year. What was Upper Crust's cash flow from operations for 2008?

A - $118,000

B - $465,000

C - $32,000

D - $433,000

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  1. 30 October, 16:21
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    Cash flows from operating activities = $465,000

    so correct option is B - $465,000

    Explanation:

    given data

    investing activities = - $270,000

    cash flows = - $163,000

    cash account at the beginning = $86,000

    cash account at the end of year = $118,000

    solution

    we get here Cash flows from operating activities that is express as

    Cash flows from operating activities = closing cash balance - (cash flows from financing activities + cash flows from investing activities + beginning cash balance) ... 1

    put here value and we get

    Cash flows from operating activities = $118,000 - (-$163,000 - $270,000 + $86,000)

    Cash flows from operating activities = $465,000
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