Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13 Using the information below, the net cash flow from operating activities is: Cash received from customers $213 000 Cash paid for salaries and other

13 Using the information below, the net cash flow from operating activities is:

Cash received from customers

$213 000

Cash paid for salaries and other expenses

185 000

Cash received from the sale of equipment

12 000

Gain on the sale of equipment

8 000

inflow of $20 000.

inflow of $12 000.

inflow of $28 000.

inflow of $8 000.

14 Which of the following would assist an entity wanting to improve their cash flow?

Selling surplus inventory.

Investing surplus cash.

Utilising the available credit terms when paying suppliers.

All of the options listed would assist in improving cash flow.

15 From the information below, the total net cash flow from investing activities is:

Borrowed $15 000 cash

Sold motor vehicle $1400

Paid Income tax $20 000

Paid Dividends $8500

Received cash from customers $18 000

Cash purchase of furniture $2700

Depreciation on furniture $270

an inflow of $1400.

an outflow of $2700.

an inflow of $6500.

an outflow of $1300.

16 Which of the following statements is true?

For an entity to survive, the net cash flow from operating activities should be negative.

For an entity to survive, the net cash flow from investing activities should be positive.

For an entity to survive, the net cash flow from financing activities should be positive.

For an entity to survive, the net cash flow from operating activities should be positive.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Leadership The Professional And Leadership Skills You Need

Authors: Brian D. Kush

1st Edition

0470450010, 9780470450017

More Books

Students also viewed these Accounting questions

Question

What do you think of the MBO program developed by Drucker?

Answered: 1 week ago