Answer:
Explanation:
1.
The cash flow from operating activities is = $28000.
Working Note:
Net Income $20000
Depreciation expense $3000
Increase in accounts receivable ($2000)
Increase in accounts payable $4000
Decrease in inventory $3000
Net Cash Flow from Operating Activities = 20000 + 3000 – 2000 + 4000 + 3000
Net Cash Flow from Operating Activities = $28000
2.
The cash flow from investing activities = $6000.
Working Note:
Proceeds from sale of equipment $6000
Net cash flow from investing activities = $6000
3.
The cash flow from financing activities = - $2000 or ($2000)
Working Note:
Payment of dividends ($2000)
Net Cash flow from financing activities = - $2000 or ($2000)