Question

use the following information to determine the firms cash flows from investing activities: beginning of year cash and equivalents = $45 end of year cash and equivalents = $25 cash flow from operations = $50 cash flow from financing = $10 -80 -35 105 130

Explanation:

Step1: Recall the cash flow formula

The change in cash and equivalents is equal to the sum of cash flows from operations, investing, and financing. The formula is:
$\text{End Cash} = \text{Begin Cash} + \text{CF Operations} + \text{CF Investing} + \text{CF Financing}$

Step2: Rearrange to solve for CF Investing

We can rearrange the formula to solve for cash flow from investing ($\text{CF Investing}$):
$\text{CF Investing} = \text{End Cash} - \text{Begin Cash} - \text{CF Operations} - \text{CF Financing}$

Step3: Substitute the values

Given:
$\text{Begin Cash} = 45$, $\text{End Cash} = 25$, $\text{CF Operations} = 50$, $\text{CF Financing} = 10$

Substitute into the formula:
$\text{CF Investing} = 25 - 45 - 50 - 10$

Step4: Calculate the result

First, $25 - 45 = -20$
Then, $-20 - 50 = -70$
Then, $-70 - 10 = -80$

Answer:

-80