Junior Co.had the following activity during 2011: Net Income $\$ 50,000$
Cash Receipts from customers $\$ 1,750,000$
Cash Payments to suppliers $\$ 1,050,000$
Amortization Expense $\$ 35,000$
Cash Payments for operations $\$ 640,000$
What was the cash flow from operating activities?
A)$ 25,000
B)$ 50,000
C)$ 60,000
D)$ 95,000

Question

Quizplus · Accepted Answer

Cash flow from operating activities is calculated as cash receipts from customers minus cash payments to suppliers and for operations, plus non-cash expenses like amortization. So, $1,750,000 - 1,050,000 - 640,000 + 35,000 = 95,000$.

Junior CoHad the Following Activity During 2011: Net Income $50,000\$ 50,000$50,000

Junior CoHad the Following Activity During 2011: Net Income $\$ 50,000$