Question

The balance of cash at the beginning of the year was $120,000, and at the end of the year was $140,000. Assuming operating cash flows equal $90,000 and investing cash flows equal $(40,000), calculate financing cash flows for the year.

Answer 1

Answer:

the  financing cash flows is -$30,000

Explanation:

The computation of the financing cash flows is shown below;

Financing cash flows = Balance of Cash at the end of the year - (balance of cash at the beginning of the year + operating cash flow + investing cash flow)

= $140,000 - ($120,000 + $90,000 - $40,000)

= -$30,000

Hence, the  financing cash flows is -$30,000

The same is to be considered