Gibson Company recorded the following cash transactions for the year: Paid $180,000 for salaries.
Paid $80,000 to purchase office equipment.
Paid $20,000 for utilities.
Paid $8,000 in dividends.
Collected $350,000 from customers.
What was Gibson's net cash provided by operating activities?
A)$150,000
B)$70,000
C)$170,000
D)$142,000

Question

Quizplus · Accepted Answer

Net cash provided by operating activities = Cash collected from customers - Cash paid for salaries - Cash paid for utilities - Cash paid for dividends= $350,000 - $180,000 - $20,000 - $8,000= $150,000

Gibson Company Recorded the Following Cash Transactions for the Year