Asked by Grant Burry on Jun 19, 2024
Verified
In the Papyrus Corporation cash receipts from customers were $136000 cash payments for operating expenses were $102000 and one-third of the company's $9300 income taxes were paid during the year. Net cash provided by operating activities is:
A) $34000.
B) $24700.
C) $30900.
D) $27800.
Net Cash
Net cash refers to the amount of cash that remains after subtracting a company's total cash outflows from its total cash inflows, indicating the company's liquidity position.
Income Taxes
Charges imposed by the authorities on earnings from companies and individuals within their territory.
Cash Receipts
The collection of money, including coins, currency, checks, and electronic payments, received by a business during a given period.
- Gain proficiency in identifying items that impact the statement of cash flows, including operational and non-operational activities.
- Distinguish between different types of cash flows (operating, investing, and financing) and understand their significance.
Verified Answer
RS
Rashonda StickneyJun 20, 2024
Final Answer :
C
Explanation :
Net cash provided by operating activities can be calculated as follows:
Cash receipts from customers - Cash payments for operating expenses - Income taxes paid = Net cash provided by operating activities
$136,000 - $102,000 - ($9,300/3) = $30,900
Therefore, the correct answer is C.
Cash receipts from customers - Cash payments for operating expenses - Income taxes paid = Net cash provided by operating activities
$136,000 - $102,000 - ($9,300/3) = $30,900
Therefore, the correct answer is C.
Learning Objectives
- Gain proficiency in identifying items that impact the statement of cash flows, including operational and non-operational activities.
- Distinguish between different types of cash flows (operating, investing, and financing) and understand their significance.