The only capital investment required for a small project is investment in inventory. The operating cash flow this year was $10,000, and inventory increased from $4,000 to $5,000. What was the cash flow from the project?

$9,000

Explanation:

Cash flow can be defined as the amount of cash that is being transferred or that flows into and out of a business which may either leads to increase or decrease in the amount of money a business or individual has.

Cash flow = profit − increase in inventory =

$4,000 - $5,000 = $1000

Therefore

$10,000 − $1,000 = $9,000

Therefore the Cash flow from the project is $9,000

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