Net cash flow from operating activities for the current year is:
A)$114,000.
B)$118,000.
C)$122,000.
D)$134,000.

Question

Quizplus · Accepted Answer

We can calculate the net cash flow from operating activities by adding the cash received from customers ($290,000) to the interest received ($12,000), and then subtracting the cash paid for operating expenses ($168,000), interest paid ($4,000), and income taxes paid ($16,000):

Net cash flow from operating activities = $290,000 + $12,000 - $168,000 - $4,000 - $16,000 = $114,000

Therefore, the correct answer is D, $134,000, which is not one of the answer choices.

Net Cash Flow from Operating Activities for the Current Year