The following income statement was drawn from the annual report of Newtown Company:

What is the net cash flow from operating activities?
A)$18,000
B)$18,600
C)$13,000
D)$14,400

Question

The following income statement was drawn from the annual report of Newtown Company:

What is the net cash flow from operating activities?
A)$18,000 
B)$18,600 
C)$13,000 
D)$14,400

Quizplus · Accepted Answer

Cash flows reported as operating activities include cash receipts from revenues,including interest and dividend revenue and cash payments for expenses,including interest expense.
Net cash flow from operating activities = Cash revenue of $30,000 - Cash operating expenses of $12,000 = $18,000

The Following Income Statement Was Drawn from the Annual Report