Quizzol

QUESTION:

During the previous year, Company X's cash balance increased by $440 million. Investing and financing activities created positive cash flow totaling $730 million.

What were net cash flows from operating activities in the statement of cash flows?

A. Outflow of $290 million.

B. Outflow of $440 million.

C. Inflow of $880 million.

D. Inflow of $440 million.

ANSWER:

Let "Operating activities" be $x$ .

$440 = x + 730$

Solving for $x$ :

$x = 440 - 730 = - 290$

So, net cash flows from operating activities are an outflow of $290 million.

The correct answer is A. Outflow of $290 million.

Posted by Cleveland on September 8, 2024