During the month of May, the Henderson Company had the following transactions: * Revenues of $60,000 were earned and received in cash.
* Bank loans of $9,000 were paid off.
* Equipment of $20,000 was purchased.
* Expenses of $36,800 were paid.
* Stockholders purchased additional shares for $22,000 cash.
A statement of cash flows for May would report net cash flows from operating activities of:
A) $60,000.
B) $16,200.
C) $23,200.
D) $20,000.

Question

Quizplus · Accepted Answer

Net cash flows from operating activities are calculated as cash received from revenues ($60,000) minus cash paid for expenses ($36,800), resulting in $23,200.

During the Month of May, the Henderson Company Had the Following