Question 1

Francesco was given a cash flow statement to analyze, but some of the accounts were smudged and could not be read. He could see that total change in cash was $12,000, cash from operations was positive $450,000 and cash from investing was negative $490,000. How much was cash from financing?

Question 2

Angela was given a direct cash flow statement prepared by a small company that her boss was considering acquiring. The cash from operations was $470,000, cash used in investing was $330,000 and cash from financing showed a use of $100,000. In addition, the balance sheet showed the accounts receivable had increased by $70,000, the accounts payable had decreased by $10,000 and inventory had increased by $15,000. Net income was $510,000. Her company uses the indirect method of cash flow statements, so her boss wanted to know how much cash from operations would be using that format.