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Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000

-What is Yowell's net cash flow from operating activities?
A)Inflow of $6,000
B)Inflow of $9,000
C)Inflow of $18,000
D)Inflow of $30,000

Question

The following information applies to the questions displayed below.
 
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000 
2) borrowed $25,000 from its bank 
3) provided consulting services for $39,000 
4) paid back $15,000 of the bank loan 
5) paid rent expense for $9,000 
6) purchased equipment costing $12,000 
7) paid $3,000 dividends to stockholders 
8) paid employees' salaries, $21,000

-What is Yowell's net cash flow from operating activities?
A)Inflow of $6,000
B)Inflow of $9,000
C)Inflow of $18,000
D)Inflow of $30,000

Quizplus · Accepted Answer

$39,000 inflow from consulting services - $9,000 outflow for rent expense - $21,000 outflow for salaries expense = $9,000 inflow

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