Chen Corporation had the following cash flows during 2012. The company uses the direct method of preparing a statement of cash flows.

- Refer to Exhibit 13-5. Given the information above, net cash inflow (outflow) from ALL activities is

Question

Chen Corporation had the following cash flows during 2012. The company uses the direct method of preparing a statement of cash flows.

- Refer to Exhibit 13-5. Given the information above, net cash inflow (outflow) from ALL activities is

Quizplus · Accepted Answer

Using the direct method, we can see that the cash inflows from operating activities were $10,000, while the cash outflows were $68,000. Thus, the net cash outflow from operating activities is ($58,000). The cash inflows from investing activities were $80,000, and the cash outflows from financing activities were $22,000. Therefore, the net cash inflow from ALL activities is ($58,000) + $80,000 - $22,000 = $0. Thus, the correct answer is C.

Chen Corporation Had the Following Cash Flows During 2012