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23 February, 16:09

For the current year, Klay Corporation reports the following information:

Net cash inflows from investing activities: $ 40,000

Net cash inflows from financing activities: $ 45,000

Cash at the beginning of the year: $ 340,000

Cash at the end of the year: $ 420,000

What was the company's cash flows from operating activities?

A cash inflow of $5,000

A cash inflow of $15,000

A cash outflow of $5,000

A cash outflow of $15,000

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Answers (2)
  1. 23 February, 17:34
    0
    The company's cash flows from operating activities was a cash inflow of $5,000

    Explanation:

    Cash at the end of the year = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities + Net cash inflows from operating activities

    Therefore,

    Net cash inflows from operating activities = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities - Cash at the end of the year = $340,000 + $40,000 + $45,000 - $420,000 = $5,000 >0

    The company's cash flows from operating activities was a cash inflow of $5,000
  2. 23 February, 18:36
    0
    A cash outflow of $5,000

    Explanation:

    the sum of cash flows from the operating, investing and financing activities must equal the net change in cash during the period
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