The amount of cash flow from operating activities that would appear on the 2014 statement of cash flows would be:
A)$385 inflow
B)$700 inflow
C)$560 outflow
D)$18,245 outflow

Question

Quizplus · Accepted Answer

$18,000 x 7% = $1,260 cash paid for interest on the note; $700 inflow from revenue - $1,260 outflow for interest = $560 outflow for operating activities. The repayment of principle is a financing activity.

The Amount of Cash Flow from Operating Activities That Would