Nelson Company experienced the following transactions during Year 1, its first year in operation.Issued $12,000 of common stock to stockholdersProvided $4,600 of services on accountPaid $3,200 cash for operating expensesCollected $3,800 of cash from accounts receivablePaid a $200 cash dividend to stockholders What is the of net cash flow from operating activities shown on the Year 1 statement of cash flows?
A) $400
B) $600
C) $1,400
D) $1,200

Question

Quizplus · Accepted Answer

Net cash flow from operating activities is calculated as cash collected from customers ($3,800) minus cash paid for operating expenses ($3,200), resulting in $600. The dividend payment is not included in operating activities.

Nelson Company Experienced the Following Transactions During Year 1, Its