Husky Company has provided the following information for its most recent year of operation:
Posted: Sat Aug 07, 2021 6:58 am
Cash collected from customers totaled $89,300.
Cash borrowed from banks totaled $31,700.
Cash paid to employees for salaries totaled $32,100.
Cash received from selling Husky common stock to stockholders totaled $41,000.
Cash payments to banks for repayment of money borrowed totaled $7,500.
Cash paid to suppliers totaled $12,500.
Land costing $25,000 was sold for $25,000 cash.
Cash paid for dividends to stockholders totaled $3,300.
How much was Husky's cash flow from operating activities?
A) $47,600.
B) $44,700.
C) $41,400.
D) $37,200.
Answer: B
Explanation: $44,700 = Cash collected from customers ($89,300) − cash paid to employees for
salaries ($32,100) − cash paid to suppliers ($12,500).
Cash borrowed from banks totaled $31,700.
Cash paid to employees for salaries totaled $32,100.
Cash received from selling Husky common stock to stockholders totaled $41,000.
Cash payments to banks for repayment of money borrowed totaled $7,500.
Cash paid to suppliers totaled $12,500.
Land costing $25,000 was sold for $25,000 cash.
Cash paid for dividends to stockholders totaled $3,300.
How much was Husky's cash flow from operating activities?
A) $47,600.
B) $44,700.
C) $41,400.
D) $37,200.
Answer: B
Explanation: $44,700 = Cash collected from customers ($89,300) − cash paid to employees for
salaries ($32,100) − cash paid to suppliers ($12,500).