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8 June, 02:46

Brian Company recorded the following cash transactions for the year ended December 31, 2013:Received cash receipts from their customers totaling $600,000Paid $225,000 in salariesPaid $80,000 in rent and utilitiesPaid $6,000 in insuranceWhat is the net cash provided by operating activities on Brian Company's Statement of Cash Flows as of December 31, 2013? A. $600,000B. $577,500C. $295,000D. $289,000

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  1. 8 June, 05:45
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    D. $289,000

    Explanation:

    The computation of the net cash provided by operating activities is shown below:

    Cash flow from operating activities

    Received cash receipts from their customers $600,000

    Less:

    Salaries Paid In Cash - $225,000

    Rent and Utilities Paid in Cash - $80,000

    Insurance Paid in Cash - $6,000

    Net Cash Provided by Operating Activities $289,000

    The cash inflow indicates in a positive sign while the cash outflow indicates in a negative sign
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