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Question:

Kimberwick Technologies reported the following information for the year ending December 31.
If the cash balance increased $13,000 over the year, cash flow from operations (CFO) is closest to:

A $22,250.
Explaination

The easiest way to calculate CFO here is total cash flow - cash flow from investing — cash flow from financing = $13,000 + 5,000 + 4,250 = $22,250. Alternatively, CFO = $50,000 - 3,250 - 17,000 - 7,000 - 500 = $22,250.