Yowell Company began operations on January 1 Year 1 During Y

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $54,000 2) borrowed $32,000 from its bank 3) provided consulting services for $52,000 cash 4) paid back $22,000 of the bank loan 5) paid rent expense for $12,500 6) purchased equipment for $19,000 cash 7) paid $3,700 dividends to stockholders 8) paid employees\' salaries of $28,000 What is Yowell\'s net cash flow from operating activities?

Solution

Answer:

Yowell\'s net cash flow from operating activities=$11,500

Working notes for the above answer:

Yowell\'s net cash flow from operating activities

Particular

Amount $

Amount $

Consulting services Revenue

52,000

Less:

Out flow from Rent Expanses

12500

Out flow from Salary Expanses

28000

40500

cash flow from operating activities

11,500