Norris Company experienced the following transactions during 2013, its first year in operation.
1) Issued $6,000 of common stock to stockholders.
2) Provided $2,300 of services on account.
3) Paid $1,600 cash for operating expenses.
4) Collected $1,900 of cash from accounts receivable.
5) Paid a $100 cash dividend to stockholders.
The amount of net cash flow from operating activities shown on Norris Company's 2013 statement of cash flows is
A) $200.
B) $300.
C) $700.
D) $600.

Question

Quizplus · Accepted Answer

$1,900 cash collected from revenue - $1,600 cash paid for expenses = $300 cash flow from operating activities

Norris Company Experienced the Following Transactions During 2013, Its First