Question

In 2008, 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 2008 and $105,000 at the end of the year. What was Upper Crust's cash flow from operations for 2008?

Answer 1

Answer:

$415,000

Explanation:

The movement between the opening and closing cash balances is as a result of the net cash flows from the operating, investing and financing activities. This are the basic elements of a cash flow statement.

Let the cash flow from operations for 2008 be T

$90,000 + T - $250,000 - $150,000 = $105,000

T = $105,000 + $250,000 + $150,000 - $90,000

T = $415,000

Upper Crust's cash flow from operations for 2008 is $415,000