Question

Hampton Industries had $53,000 in cash at year-end 2015 and $14,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $250,000. Cash flow from financing activities totaled +$140,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Enter cash outflows with a minus sign. $ If accruals increased by $10,000, receivables and inventories increased by $195,000, and depreciation and amortization totaled $5,000, what was the firm's net income? $

Answer 1

answer 1)
	Given that-
	Beginning cash balance (year2015)	53000
	Ending cash balance (year 2016)	14,000
	Change in cash = 14000-53000	-39,000
	Cash flow from investing activities	-250,000
	Cash flow from Financing activities	140,000
	We know that cash flow from (operating + Financing + Investing ) activities = Change in cash flow
	Therefore cash flow from operating activities =	71000
	=-39000-(-250000+140000)
answer 2)
	accruals increased	10000
	receivables and inventories increased	-195,000
	depreciation and amortization	5,000
		-180000
	Operating cash flow	71000
	Net income = 71000-(-180000)	251000