Katsis Limited had the following cash flows during the reporting period:
-Purchase of intangibles $30 000
-Proceeds from sale of plant $28 000
-Receipts from customers $832 000
-Payments to suppliers $593 000
-Interest received $17 600
-Income taxes paid $45 500
The net cash flows from operating activities was:

Question

Quizplus · Accepted Answer

Net cash flows from operating activities are calculated as receipts from customers minus payments to suppliers and income taxes paid. Therefore, $832,000 - $593,000 - $45,500 = $193,500. However, interest received is also considered an operating activity, so we add $17,600, resulting in $211,100.

Katsis Limited Had the Following Cash Flows During the Reporting