Using the information below,the net cash flow from operating activities is:
$\begin{array}{|l|r|}
\hline\text{ Cash received from customers} & \$ 213000 \
\hline \text{Cash paid for salaries and other expenses} & 185000 \
\hline \text{Cash received from the sale of equipment }& 12000 \
\hline \text{Gain on the sale of equipment }& 8000 \
\hline
\end{array}$
A) inflow of $20 000.
B) inflow of $12 000.
C) inflow of $28 000.
D) inflow of $8 000.

Question

Quizplus · Accepted Answer

Net cash flow from operating activities is calculated by adding up all cash inflows from operating activities and deducting all cash outflows from operating activities. 
In this case, the total cash inflow from operating activities is $50,000 (cash sales of $25,000 plus receipt of accounts receivable of $25,000), and the total cash outflow from operating activities is $22,000 (supplies expense of $12,000 plus salary expense of $10,000). 
Therefore, the net cash flow from operating activities is $50,000 - $22,000 = $28,000, which means there was an inflow of $28,000. Therefore, the correct answer is C.

Using the Information Below,the Net Cash Flow from Operating Activities