Required information [The following information applies to the questions displayed below.] Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $76,000 2) borrowed $43,000 from its bank 3) provided consulting services for $74,000 4) paid back $33,000 of the bank loan 5) paid rent expense for $18,000 6) purchased equipment costing $30,000 7) paid $4,800 dividends to stockholders 8) paid employees' salaries, $39,000 What is Yowell's net cash flow from operating activities?

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
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### Net Cash Flow from Operating Activities

#### Question:
What is Yowell's net cash flow from operating activities?

#### Multiple Choice Answers:
- **Option 1:** Inflow of $35,000
- **Option 2:** Inflow of $17,000
- **Option 3:** Inflow of $12,200
- **Option 4:** Inflow of $60,000

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In this multiple-choice question, you are asked to determine the net cash flow from operating activities for a company named Yowell. The four options present different potential cash inflows. Understanding and analyzing how to derive net cash flow from operating activities involves:

1. **Operating Activities**: These include the primary revenue-generating activities of the entity and other activities that are not investing or financing activities.

2. **Inflow Calculation**: This involves the sum of cash inflows (sales revenue, dividends, etc.) minus cash outflows (operational expenses, taxes, etc.).

Each choice provides a different figure, and careful financial analysis is needed to select the correct net cash flow.

---
Transcribed Image Text:### Net Cash Flow from Operating Activities #### Question: What is Yowell's net cash flow from operating activities? #### Multiple Choice Answers: - **Option 1:** Inflow of $35,000 - **Option 2:** Inflow of $17,000 - **Option 3:** Inflow of $12,200 - **Option 4:** Inflow of $60,000 --- In this multiple-choice question, you are asked to determine the net cash flow from operating activities for a company named Yowell. The four options present different potential cash inflows. Understanding and analyzing how to derive net cash flow from operating activities involves: 1. **Operating Activities**: These include the primary revenue-generating activities of the entity and other activities that are not investing or financing activities. 2. **Inflow Calculation**: This involves the sum of cash inflows (sales revenue, dividends, etc.) minus cash outflows (operational expenses, taxes, etc.). Each choice provides a different figure, and careful financial analysis is needed to select the correct net cash flow. ---
### Required Information

**The following information applies to the questions displayed below.**

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:

1. Issued stock for $76,000
2. Borrowed $43,000 from its bank
3. Provided consulting services for $74,000
4. Paid back $33,000 of the bank loan
5. Paid rent expense for $18,000
6. Purchased equipment costing $30,000
7. Paid $4,800 dividends to stockholders
8. Paid employees' salaries, $39,000

**Question:**
What is Yowell's net cash flow from operating activities?

#### Multiple Choice
Transcribed Image Text:### Required Information **The following information applies to the questions displayed below.** Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1. Issued stock for $76,000 2. Borrowed $43,000 from its bank 3. Provided consulting services for $74,000 4. Paid back $33,000 of the bank loan 5. Paid rent expense for $18,000 6. Purchased equipment costing $30,000 7. Paid $4,800 dividends to stockholders 8. Paid employees' salaries, $39,000 **Question:** What is Yowell's net cash flow from operating activities? #### Multiple Choice
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