Question

The following information was drawn from Gore, Inc.’s statement of cash flows. (1) $2,000 net cash outflow from investing activities. (2) $3,000 net cash inflow from financing activities. (3) $6,000 net increase in the cash balance.Based on this information, the amount of cash flow from operating activities appearing on the statement of cash flows must be a

Answer 1

$5,000 net cash inflow

Step-by-step explanation:

The computation of the cash flow from operating activities is shown below:

As we know that

Increase in cash = Cash flow from operating activities + cash flow from investing activities + cash flow from financing activities

$6,000 = Cash flow from operating activities - $2,000 + $3,000

So, the cash flow from operating activities is

= $6,000 - $1,000

= $5,000 net cash inflow