Ojeda Corporation had the following cash flows during 2012. The company uses the direct method of preparing a statement of cash flows. Given this information, net cash inflow (outflow) from operating activities is

Question

Ojeda Corporation had the following cash flows during 2012. The company uses the direct method of preparing a statement of cash flows.  Given this information, net cash inflow (outflow) from operating activities is

Quizplus · Accepted Answer

Net cash inflow (outflow) from operating activities can be calculated by using the direct method as follows:

Cash received from customers = $77,000
Cash paid to suppliers = ($68,500)
Cash paid for operating expenses = ($3,000)

Net cash inflow (outflow) from operating activities = $77,000 - $68,500 - $3,000 = $5,500.

Therefore, the best choice is B.

Ojeda Corporation Had the Following Cash Flows During 2012