Question

Jackson Company recorded the following cash transactions for the year: Paid $180,000 for salaries. Paid $80,000 to purchase office equipment. Paid $8,000 in dividends. Collected $310,000 from customers. What is the company’s net cash from operating activities for the year

Answer 1

Answer:

The company's net cash is: $42,000

Explanation:

Net cash = Total income - Total expenses

Income:

$310,000 from customers

Expenses:

$180,000 for salaries

$80,000 to purchase office equipment

$8,000 in dividends

So;

Net cash = $310,000-($180,000+$80,000+$8,000)

Net cash= $310,000-$268,000

Net cash= $42,000