Question

Brian Company recorded the following cash transactions for the year ended December 31, 2013:Received cash receipts from their customers totaling $600,000Paid $225,000 in salariesPaid $80,000 in rent and utilitiesPaid $6,000 in insuranceWhat is the net cash provided by operating activities on Brian Company's Statement of Cash Flows as of December 31, 2013?A. $600,000B. $577,500C. $295,000D. $289,000

Answer 1

D. $289,000

Step-by-step explanation:

The computation of the net cash provided by operating activities is shown below:

Cash flow from operating activities

Received cash receipts from their customers $600,000

Less:

Salaries Paid In Cash -$225,000

Rent and Utilities Paid in Cash -$80,000

Insurance Paid in Cash -$6,000

Net Cash Provided by Operating Activities $289,000

The cash inflow indicates in a positive sign while the cash outflow indicates in a negative sign