The following information is provided for Unique Ltd for the period ended 30 June 2005: All transactions are in cash unless otherwise indicated.What is the net cash flow from operating activities for the period?
A) Net cash inflow $596 00
B) Net cash inflow $426,000
C) Net cash inflow $536,000
D) Net cash inflow $486,000
E) None of the given answers.

Question

The following information is provided for Unique Ltd for the period ended 30 June 2005:  All transactions are in cash unless otherwise indicated.What is the net cash flow from operating activities for the period?
A) Net cash inflow $596 00 
B) Net cash inflow $426,000 
C) Net cash inflow $536,000 
D) Net cash inflow $486,000 
E) None of the given answers.

Quizplus · Accepted Answer

The net cash flow from operating activities can be calculated using the indirect method of preparing the cash flow statement. Based on the information provided, the net cash flow from operating activities is $536,000. This is calculated by adjusting the net profit for non-cash expenses such as depreciation and amortization and for changes in working capital items such as accounts receivable, accounts payable, and inventory.

The Following Information Is Provided for Unique Ltd for the Period