Question

Under Armour had $50,000 in cash on the balance sheet at the end of 2013. At the end of the year of 2014 Under Armour had $200,000 in cash. Cash from long term investing activities was $75,000 and cash flow from financing activities totaled $125,000. What was the firm's cash flow from operating activities?

A) $200,000

B) -$50,000

C) $100,000

D) $0

Answer 1

Beginning cash = $50,000

Ending cash = $200,000

Cash flow from investing activities = $75,000

Cash flows from financing activities = $125,000

Increase in cash = Ending cash - Beginning cash

= 200,000-50,000

= $150,000

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

150,000 = Cash flows from operating activities + 75,000+125,000

Cash flows from operating activities = -$50,000

Correct option is B.

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