Ashley Co.uses the direct method in calculating its cash flow from operations.Which of the following items will not have an effect on cash flow from operating activities?
A)Increase in inventory.
B)Payment of dividends to stockholders.
C)Cash collections from customers.
D)Payment of interest to lenders.

Question

Quizplus · Accepted Answer

Operating activities are affected by an increase in inventory,cash collections from customers,and payment of interest.The payment of dividends to stockholders is reported as cash outflows from financing activities.

Ashley Couses the Direct Method in Calculating Its Cash Flow from from Operations.Which