Marion Company had these transactions during the first month of the new accounting period: -Sold merchandise for $9000 on credit;its cost was $5000 and it was purchased and paid for last year
-Collected $3000 from an account receivable
-Borrowed $10 000 from the bank
-Paid dividends of $500
Using the above information,Marion would report net cash flow from operating activities for the new period as:

Question

Quizplus · Accepted Answer

The net cash flow from operating activities is calculated by adding the cash inflows and subtracting the cash outflows from the operating activities.

Cash inflows:
- Collection of accounts receivable: $3000

Cash outflows:
- None of the given transactions result in cash outflows from operating activities.

Therefore, net cash flow from operating activities = cash inflows - cash outflows
= $3000 - $0
= $3000.

Option B is the correct answer.

Marion Company Had These Transactions During the First Month of the New