Smith and Associates had $55,000 in cash at year-end 2012 and $15,000 in cash at year-end 2013. Cash flow from long-term operating activities totaled $â€"240,000, and cash flow from investing activities totaled $130,000. What was the cash flow from financing activities?

Question

Business

Branson Allison

24 July, 04:09

Smith and Associates had $55,000 in cash at year-end 2012 and $15,000 in cash at year-end 2013. Cash flow from long-term operating activities totaled $â€"240,000, and cash flow from investing activities totaled $130,000. What was the cash flow from financing activities?

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Ruth Burgess · Answer 1

Answer: negative balance of $410,000

Explanation: The given activities relates to the cash flow statement. The cash flow statement shows the uses and sources of cash within an accounting period so that the accountant can calculate and analyze the change in balance of cash from beginning to the end.

Therefore, The sum of the balance of three activities and the opening balance is equal to the ending cash balance. Hence : -

$55,000 + $240,000 + $130,000 + financing activity balance = $15,000

therefore,

financing activity balance = ($410,000)