Question

Revenue on account amounted to $5,200. Cash collections of accounts receivable amounted to $4,900. Cash paid for expenses was $3,600. The amount of employee salaries accrued at the end of the year was $1,400. What is the net cash flow from operating activities for the year

Answer 1

Answer:

$5100

Explanation:

The net cash flow in this scenario can be calculated by adding all the incoming revenue of the company and subtracting all the expenses that would be outgoing. Incoming Revenue in this scenario would be the initial $5,200 and the accounts receivable of $4,900. While the outgoing expenses would be the cash for expenses of $3,600 and the employee salaries accrued of $1400. Now we can add and subtract them to calculate the net cash flow

$5200 + $4900 - $3600 - $1400 = $5100