Team Shirts,Inc.collected $16,000 from accounts receivable,paid $10,000 of its accounts payable and paid $1,000 in interest.The amount of net cash from (or used)for OPERATING activities is ________.
A)$5,000
B)$6,000
C)$(5,000)
D)$(6,000)

Question

Team Shirts,Inc.collected $16,000 from accounts receivable,paid $10,000 of its accounts payable and paid $1,000 in interest.The amount of net cash from (or used)for OPERATING  activities is ________.
A)$5,000
B)$6,000
C)$(5,000)
D)$(6,000)

Quizplus · Accepted Answer

Net cash from operating activities is calculated as cash collected from customers ($16,000) minus cash paid for operating expenses, which includes accounts payable ($10,000) and interest ($1,000). Therefore, $16,000 - $10,000 - $1,000 = $5,000.