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Valley Mills Enterprises Presented Here Are Cash Flows (In

Question 99

Multiple Choice

Valley Mills Enterprises Presented here are cash flows (in $ Millions) for Valley Mills Enterprises' most recent fiscal year.
 Cash received from:  Customers $2,500 Interest on investments 300 Sale of old equipment 250 Sale of company’s capital stock 800 Long-term debt proceeds1,700\begin{array}{lrr}\underline{\text { Cash received from: }}\\ \text { Customers } &\$2,500\\ \text { Interest on investments } &300\\ \text { Sale of old equipment } &250\\ \text { Sale of company's capital stock } &800\\ \text { Long-term debt proceeds} &1,700\\\end{array}


 Cash paid for:  Interest on debt $300 Income tax 130 Principal payments on debt 900 Purchase of building 5,000 Purchase of inventory 1,800 Dividends on capital stock 400 Operating expenses 825\begin{array}{lr}\underline{\text { Cash paid for: }}\\\text { Interest on debt } & \$ 300 \\\text { Income tax } & 130 \\\text { Principal payments on debt } & 900 \\\text { Purchase of building } & 5,000 \\\text { Purchase of inventory } & 1,800 \\\text { Dividends on capital stock } & 400 \\\text { Operating expenses } & 825\end{array}
Net cash flows provided (used) by operating activities (direct method) are ________.


A) ($255)
B) ($525)
C) ($755)
D) $570

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