Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business. To identify: Amount of the operating activity.

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Answer 1

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Sisu, Oliver and Jones are partners. They share profits and losses in the ratios 2/5,2/5 and 1/5 respectively. For the year ended 31 December 19x6 their capital accounts remained fixed at the following amounts Sisu R6000 Oliver R4000 Jones R2000 They have agreed to give each other 10 per cent per annum on their capital accounts. In addition to the above partnership salaries of R3000 for Oliver and R1000 for Jones are to be charged. The net profit of the partnership before taking any of the above into account was R25200. You are required to draw up the appropriation statement of the partnership for the year ended 31 December 19x6

Answer 2

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Answer 3

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Answer 4

Question

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Answer 6

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550

Hence, net cash from operating activities is $23,550.

Answer 7

Chapter 12, Problem 1MCQ

To determine

Introduction:

Cash Flow from Operating Activity: Cash flow from operating activities refers to the cash inflow and out flow from the operating activity of the company. Operating activity of the company refers to the activities involved in day to day operations of the business.

To identify:

Amount of the operating activity.

Answer 8

Expert Solution & Answer

Explanation of Solution

‘Option b’ is the correct answer.

Calculate cash flow from operating activity.

Given,
Net income is $15,200.
Deprivation is $10,000.
Gain on sale of land is $3,000.
Increase in inventory is $1500.
Increases in account payable $2,850.

Cash flow from operating activities	Amount$
Net income	15,200
Depreciation	10,000
Gain on sale of land	(3000)
Increase in inventory	(1500)
Increase in account payable	2,850
Net cash from operating activities	23,550