Question

Hampton Industries had $67,000 in cash at year-end 2017 and $10,000 in cash at year-end 2018. The firm invested in property, plant, and equipment totaling $180,000. Cash flow from financing activities totaled +$210,000. Round your answers to the nearest dollar, if necessary.

A. What was the cash flow from operating activities? Cash outflow, if any, should be indicated by a minus sign.

$  

B.If accruals increased by $10,000, receivables and inventories increased by $190,000, and depreciation and amortization totaled $35,000, what was the firm's net income?
$  

Answer 1

cash flow from operating activities(balance)(-57000+180,000-210,000)	(87000)(Negative).
Add: cash flow from investing activities	(180,000)
Add: cash flow from financing activities	210,000
Net change in cash(10000-67000)	(57000)
Add:Beginning cash balance	67000
Ending cash balance	10,000

2. cash flow from operating activities=Net income+depreciation and amortization+increase in accruals-increase in receivables and inventories

-87000=net income+35000+10,000-190,000

net income=(-87000-35000-10000+190,000)

=$58,000