Saturday, October 10, 2020

What amount would the company report for operating cash flows in the statement of cash flows?

Consider the following list of transactions:


Repay borrowing from the bank, $2,000.

Pay employees' salaries of $1,500.

Purchase equipment for cash, $10,000.

Provide services to customers for cash, $4,500.

Issue shares of common stock for cash, $5,000.

Pay utilities, $1,000.

Provide services to customers on account, $2,500.

Sell old delivery truck for cash, $4,000.


What amount would the company report for operating cash flows in the statement of cash flows?


A) $5,000.

B) $4,500.

C) $1,000.

D) $2,000.


Answer: $2,000.,

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