Yowel Company began operations on January 1 Year 1 During Ye

Yowel Company began operations on January 1 Year 1 During Year 1, the company engaged in the following cash tra ksued stock for$78,000 borrowed $44,000 tom its berk 3l provided consulting services for $76.000 casth 4) paid back $34,000 of the bank loan 51 paid rent expense for $18,500 6) purchased equipment for $31000 cash 7 paid $4900 dividends to stockholdens 8) paid employees\' salaries of $40.00D What is Yowelrs net cash fhow from operating activities? Mumple Choice flow of $61,500 nfow of $12.600 fow of $17500 ow of $36.000

Solution

note: Since multiple unrelated questions are asked, the first appearing question is answered, also the second appearing question is answered as a bonus.

1.C.Inflow of $17,500.

the following is the calculation of cash flow from operating activities:

2. C$12,800.

liabilities = assets - common stock - ending retained earnings

=>$26,000 - $5,600 - $7,600

=>$12,800.

Issue stock	Financing activitiy
borrow loan	financing activity
Cash inflow from consulting service	$76,000
Paid back loan	financing activiy
Rent payment (outflow from operating activity)	($18,500)
Purchase of equipment	investing activity
paid dividends	financing activity
paid salaries	($40,000)
net cash inflow from operating activities	$17,500