For the year ended December 31,Year 1,Carsem Company had cash collections from customers of $220,000,cash paid to employees of $32,000,cash paid to suppliers of $100,000,cash used to retire long-term bonds of $32,000,and cash payments for dividends of $20,000.Based on this information,what is the net cash provided from operating activities?
A)$68,000
B)$88,000
C)$188,000
D)$120,000

Question

Quizplus · Accepted Answer

Cash flows reported as operating activities include cash receipts from revenues,including interest and dividend revenue and cash payments for expenses,including interest expense.
Net cash flow from operating activities = Cash collected from customers of $220,000 - Cash paid to employees of $32,000 - Cash paid to suppliers of $100,000 = $88,000

For the Year Ended December 31,Year 1,Carsem Company Had Cash