Yowel Company began operations on January 1 Year 1 During Year 1, the company en

Question

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

Explanation / Answer

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

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