Yowell Company Began Operations on January 1, Year 1

question 26

Multiple Choice

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions
1) issued stock for $56,0002) borrowed $33,000 from its bank3) provided consulting services for $55,000 cash4) paid back $23,000 of the bank loan5) paid rent expense for $13,0006) purchased equipment for $20,000 cash7) paid $3,800 dividends to stockholders8) paid employees' salaries of $29,000
What is Yowell's net cash flow from operating activities?

• A) Inflow of $13,000
• B) Inflow of $42,000
• C) Inflow of $9,200
• D) Inflow of $26,000

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Definitions:

Piece Rate Plans

Compensation systems where employees are paid based on the quantity of work completed or units produced, which can motivate higher productivity.

Merit Pay

A compensation strategy that provides salary increases or bonuses based on employee performance achievements.

Standard Hour Plans

Compensation systems where workers are paid based on a fixed rate for each unit of production completed within a standard time.

Stock Ownership

Refers to holding shares or equity in a company, which can be a form of compensation or investment, aligning employees' interests with the organization's success.