Barrow Company recorded the following cash transactions for the year: Paid $115000 for salaries.
Paid $40000 to purchase office equipment.
Paid $9000 for utilities.
Sold investments for cash of $5000.
Paid $11000 in dividends.
Collected $295000 from customers.
Issued shares for cash of $120000.
What was Barrow's net cash provided (used) by operating activities?
A)($40000)
B)$160000
C)$131000
D)$180000

Question

Quizplus · Accepted Answer

To calculate the net cash provided by operating activities, we need to start with the amount of cash collected from customers (which is $295000) and subtract the cash paid for salaries, utilities and dividends (which are $115000, $9000, and $11000 respectively). 
So, Net cash provided by operating activities = $295000 - ($115000 + $9000 + $11000) = $131000. 
Therefore, the correct answer is C.

Barrow Company Recorded the Following Cash Transactions for the Year