The following data relate to Austin Corporation for last year: What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?
A)$212,000
B)$114,000
C)$165,000
D)$103,000

Question

The following data relate to Austin Corporation for last year:  What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?
A)$212,000 
B)$114,000 
C)$165,000 
D)$103,000

Quizplus · Accepted Answer

The net cash provided by operating activities is found by adding up the cash inflows from operating activities (such as cash received from customers) and subtracting the cash outflows from operating activities (such as payments made to suppliers). Looking at the information given, we see that the Operating Activities section has a cash inflow of $217,000 and a cash outflow of $52,000. Therefore, the net cash provided by operating activities is $165,000 ($217,000 - $52,000).

The Following Data Relate to Austin Corporation for Last Year