Chow Company earned $1,500 of cash revenue, paid $1,200 for cash expenses, and paid a $200 cash dividend to its stockholders. Which of the following statements is true?
A) The net cash inflow from operating activities was $100.
B) The net cash outflow for investing activities was $200.
C) The net cash inflow from operating activities was $300.
D) The net cash outflow for investing activities was $100.

Question

Quizplus · Accepted Answer

The net cash inflow from operating activities is calculated as cash revenue minus cash expenses, which is $1,500 - $1,200 = $300. There is no information given about investing activities, so options B and D can be ruled out. Option A is incorrect because the net cash inflow from operating activities is $300, not $100. Therefore, the correct answer is option C.

Chow Company Earned $1,500 of Cash Revenue, Paid $1,200 for Cash