Answer:
$460
Explanation:
Cash flow from operating activities involved all the cash flows related to the operations of the company like sales , purchases, receivable, payable etc.
Net Cash flow is the net of receipts and Payment.
Following are the operating cash flows.
Cash received from:
Customers $3,600
Cash inflow $3,600
Cash paid for:
Income tax $200
Purchase of inventory $2,200
Operating expenses $740
Cash outflow ($3,140)
Net Cash Flow $460
All of the following cash flows relates to the Investing and Financing cash flows.
Cash Received
Interest on investments 320
Sale of land 220
Sale of Rowdy's capital stock 840
Issuance of debt securities 3,200
Payments
Interest on debt $ 420
Debt principal reduction 2,700
Purchase of equipment 6,400
Dividends on capital stock 560
Answer:
Rowdy's would report net cash inflows (outflows) from operating activities in the amount of $460.
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
Hence, net cash inflows (outflows) from operating activities
= $3600 - $200 - $2200 - $740
= $460
