Answer:
Benton Island, Inc.
Operating Activities Section of the Statement of Cash Flows for the year ended December 31, 2018 (using the direct method):
Cash from customers $80,000
Cash to Suppliers -85,000
Cash to Employees -50,000
Income Taxes -11,000
Net Cash flow from Operating -66,000
Step-by-step explanation:
1. The operating activities section shows inflows and outflows of cash resulting from a company's key operating activities. Operating activities are different from the investing and financing activities of a firm. The investing activities section shows the investments in assets and other entities made by the company, while the financing activities section shows how the company is funded and the repayments made to fund providers in principal and interest.
2. The operating activities section can be prepared using two methods: the direct and the indirect methods. The direct method starts by identifying the cash receipts and payments from operating activities. The indirect method starts with the operating income and makes adjustments for non-cash flows, like Depreciation.