Question

Hampton Industries had $47,000 in cash at year-end 2017 and $24,000 in cash at year-end 2018. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing activities totaled +$220,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign.

Answer 1

Answer:

Cash flow from operating activities=$7000

Explanation:

First of all we will find the total decrease in cash flow::

Cash at the end of year 2017-Cash at the end of year 2018

Total Decrease in Cash =$47000-$24000

Total Decrease in Cash =$23000

Firm  invested $20000 is cash outflow.

Invested cash + Cash from financial activities+cash flow from operating activities= Total Decrease in cash

-$250000+$220000+ cash flow from operating activities=-$23000

Cash flow from operating activities=$7000

Answer 2

Answer:

The cash flow from operating activities was $7,000.

Explanation:

Ending Cash Balance

= Opening Cash Balance + Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash Flow from Financing Activities  

$24,000 = $47,000 + Cash Flow from Operating Activities - $250,000 + $220,000

Cash Flow from Operating Activities = $24,000 - $47,000 + $250,000 -  $220,000

= $7,000

Therefore, The cash flow from operating activities was $7,000.