Use the information given below to answer the following questions:
$$\begin{array} { l r }
&\$\
\text { Cash sales } & 20000 \
\text { Credit sales } & 60000 \
\text { Cash received from accounts receivable } & 42000 \
\text { Wages paid } & 10000 \
\text { Wages owing at year-end } & 8000
\end{array}$$
-What is the cash flow from operations for 2012?
A) $52 000
B) $62 000
C) $70 000
D) $104 000.

Question

Use the information given below to answer the following questions:
$$\begin{array} { l r } 
&\$\
\text { Cash sales } & 20000 \
\text { Credit sales } & 60000 \
\text { Cash received from accounts receivable } & 42000 \
\text { Wages paid } & 10000 \
\text { Wages owing at year-end } & 8000
\end{array}$$
-What is the cash flow from operations for 2012?
A) $52 000
B) $62 000
C) $70 000
D) $104 000.

Quizplus · Accepted Answer

Cash flow from operations is calculated as cash sales plus cash received from accounts receivable minus wages paid: $20,000 + $42,000 - $10,000 = $52,000.

Use the Information Given Below to Answer the Following Questions