Question

Garret Company has provided the following selected information for the year ended December 31, 2016: Cash collected from customers was $790,000. Cash received from stockholders in exchange for common stock totaled $90,000. Cash paid to suppliers was $380,000. Cash paid to employees was $220,000. Cash to stockholders for dividends was $54,000. Cash received from sale of a building was $300,000. Cash paid for store rent was $40,000. Cash received for interest and dividends was $6,000. Cash paid for income taxes was $45,000. Based on the selected information provided, how much was Garret's cash flow from operating activities

Answer 1

Answer: $111,000

Explanation:

Based on the selected information provided, Garret's cash flow from operating activities will be:

Cash collected from customers = $790,000

Less: Cash paid to suppliers = $380,000.

Less: Cash paid to employees = $220,000.

Less: Cash paid for store rent = $40,000.

Add: Cash received for interest and dividends = $6,000.

Less: Cash paid for income taxes = $45,000.

Total = $111000

Garret's cash flow from operating activities will be $111000