Husky Company has provided the following information for its most recent year of operation:

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.

Question

Business

Grace Cannon

22 December, 14:39

Husky Company has provided the following information for its most recent year of operation:

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.

+2

Answers (1)

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Goldie · Answer 1

Cash flow from operating activity = cash collected from customers - salaries paid - cash paid to suppliers

Cash flow from operating activity = $89,300 - $32,100 - $12,500

Cash flow from operating activity = $44,700