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During the month of February,Fadness Company had the following transactions:
(1)Revenues of $225,000 were earned and received in cash.
(2)Bank loans of $18,000 were paid off.
(3)New bank loans of $15,000 were incurred.
(4)Equipment of $40,000 was purchased with cash.
(5)Equipment was sold for its book value of $36,000.Cash was received.
(6)Expenses of $171,400 were paid.
(7)Stockholders purchased additional shares for $50,000 cash.
-A statement of cash flows for February would report net cash flows from operating activities of:
A)$ 4,000.
B)$35,600.
C)$53,600.
D)$96,600.

Question

Quizplus · Accepted Answer

To calculate the net cash flows from operating activities, we need to start with the revenues earned and received in cash: $225,000. Then subtract the expenses paid: $171,400. This gives us net cash flows from operating activities of $53,600.

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