Yowell Company Began Operations on January 1, Year 1

question 65

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 $40,0002) borrowed $25,000 from its bank3) provided consulting services for $39,0004) paid back $15,000 of the bank loan5) paid rent expense for $9,0006) purchased equipment costing $12,0007) paid $3,000 dividends to stockholders8) paid employees' salaries for work completed during the year, $21,000
What is Yowell's net cash flow from operating activities?

• A)Inflow of $6,000
• B)Inflow of $9,000
• C)Inflow of $18,000
• D)Inflow of $30,000

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Definitions:

Ethylethanoate

Also known as ethyl acetate, an organic compound used as a solvent in many applications due to its pleasant smell and quick evaporation.

Methylethanoate

An ester formed from methanol and acetic acid, known for its fruity smell and used in the manufacture of flavors and fragrances.

Ethylmethanoate

A chemical compound more commonly known as ethyl formate, an ester formed from ethanol and formic acid with the formula C3H6O2.