Answer:
Cash flow from operating activities = ($34,000)
Explanation:
Cash flow statement has three levels of activity. These are-
a) Cash flow from operating activities;
b) Cash flow from investing activities;
c) Cash flow from financing activities;
By adding up those three activities, we can get the changes in cash at the end of the period. Or, we can find the cash amount which is shown in the Balance sheet.
Since, cash flow from investing and financing activities are given, we need to calculate the cash flow from operating activities.
We know, Cash flow from operating activities
+ Cash flow from investing activities
+ Cash flow from financing activities
= Changes in cash
Again, Changes in cash = Cash at the ending period - Beginning cash
Putting the values,
Cash flow from operating activities + ($150,000) + $150,000 = $27,000 - $61,000
Cash flow from operating activities = ($34,000)
<em>Note: Brackets indicate "minus".</em>
