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22 February, 12:23

In 2018, Usher Sports Shop had cash flows from investing activities of ($2,150,000) and cash flows from financing activities of ($3,219,000). The balance in the firm's cash account was $980,000 at the beginning of 2018 and $1,025,000 at the end of the year. Calculate Usher Sports Shop's cash flow from operations for 2018.

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  1. 22 February, 14:47
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    Usher Sports Shop's cash flow from operations for 2018: $5,414,000

    Explanation:

    Cash at the end of the year = Cash at the beginning of the year + Cash flows from investing activities + Cash flows from financing activities + Cash flows from operating activities

    Therefore:

    Cash flows from operating activities = Cash at the beginning of the year + Cash flows from investing activities + Cash flows from financing activities - Cash at the end of the year

    Cash flows from investing activities of ($2,150,000) <0 and cash flows from financing activities of ($3,219,000) <0.

    Cash flows from operating activities = - $980,000 + $2,150,000 + $3,219,000 + $1,025,000 = $5,414,000
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