Question

[14] A company calculated the following data for the period: Cash received from customers $25,000 Cash received from sale of equipment 1,000 Interest paid to bank on note 3,000 Cash paid to employees 8,000 What amount should the company report as net cash provided by operating activities in its statement of cash flows? A. $14,000 B. $15,000 C. $18,000 D. $26,000

Answer 1

Answer: Option (A) is correct.

Step-by-step explanation:

Given that,

Cash received from customers = $25,000

Cash received from sale of equipment = $1,000

Interest paid to bank on note = $3,000

Cash paid to employees = $8,000

Net cash provided by operating activities:

= Cash received from customers - Cash paid to employees 8,000 - Interest paid to bank on note 3,000

= $25,000 - $8,000 - $3,000

= $14000