Ask Question
6 March, 08:46

For the current year, Klay Corporation reports the following information:

Net cash inflows from investing activities: $ 40,000

Net cash inflows from financing activities: $ 45,000

Cash at the beginning of the year: $ 340,000

Cash at the end of the year: $ 420,000

What was the company's cash flows from operating activities?

A cash inflow of $5,000

A cash inflow of $15,000

A cash outflow of $5,000

A cash outflow of $15,000

+5
Answers (2)
  1. 6 March, 09:18
    0
    The company's cash flows from operating activities was a cash inflow of $5,000

    Explanation:

    Cash at the end of the year = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities + Net cash inflows from operating activities

    Therefore,

    Net cash inflows from operating activities = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities - Cash at the end of the year = $340,000 + $40,000 + $45,000 - $420,000 = $5,000 >0

    The company's cash flows from operating activities was a cash inflow of $5,000
  2. 6 March, 12:21
    0
    A cash outflow of $5,000

    Explanation:

    the sum of cash flows from the operating, investing and financing activities must equal the net change in cash during the period
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “For the current year, Klay Corporation reports the following information: Net cash inflows from investing activities: $ 40,000 Net cash ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers