Cash flows from operating activities – direct method

Carla Limited had the following financial statements:

Additional information:
• Equipment that cost $8,000 was sold for the carrying amount of $3,750.
• Dividends declared and paid were $10,000.
Prepare the operating activities section of a statement of cash flows using the direct method.

Question

Cash flows from operating activities – direct method

Carla Limited had the following financial statements:

Additional information:
•	Equipment that cost $8,000 was sold for the carrying amount of $3,750. 
•	Dividends declared and paid were $10,000.  
Prepare the operating activities section of a statement of cash flows using the direct method.

Quizplus · Accepted Answer

The Answer of Cash flows from operating activities – direct method

Carla Limited had the following financial statements:

Additional information:
•	Equipment that cost $8,000 was sold for the carrying amount of $3,750. 
•	Dividends declared and paid were $10,000.  
Prepare the operating activities section of a statement of cash flows using the direct method.

Cash Flows from Operating Activities – Direct Method