Zoum Corporation had the following transactions during 2014: -Issued $125,000 of par value...

Question:

Zoum Corporation had the following transactions during 2014:

-Issued $125,000 of par value common stock for cash.

-Recorded and paid wages expense of $60,000.

-Purchased land for $50.000 cash.

-Declared and paid a cash dividend of $10,000.

-Recorded cash sales of $400,000.

-Bought inventory for cash of $160,000.

-Paid interest expense of $1,000.

-Purchased treasury stock for $70,000.

-Repaid a long-term note payable in the amount of $30,000.

What is the net cash provided by operating activities?

a) $180,000

b) $179,000

c) $160,000

d) $176,000

Cash Flow Statement:

Cash flow statement is one of the required financial statements to be issued at every end of the accounting period. This FS statement focuses only on the cash transactions/activities of the business for the reporting period. This has three major categories - Financing, Operating, and Investing.

Answer and Explanation:

Cash sales 400,000
Payment for wages (60,000)
Purchase of inventory (160,000)
Payment of interest (1,000)
Net cash provided by operating activities 179,000

The answer is b $179,000


Learn more about this topic:

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Using the Statement of Cash Flows for Decision Making

from Accounting 101: Financial Accounting

Chapter 12 / Lesson 5
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