Calculate Net Cash Flow from Operating Activities If A)$19,000
B)$29,000

question 2

Multiple Choice

Calculate net cash flow from operating activities if: $$\begin{array}{l}\text { Statement of financial performance (extract) }\\\begin{array} { l r r } \text { Sales (credit) } & \$ 80,000 & \\\text { Less Expenses (cash) } & \$ 48,000 & \\ { \text { Profit } } & \$ 32,000 & \\& & \\\text { Ledger account (extract) } & & \\& \text { Start of } & \text { End of } \\& \text { Period } & \text { Period } \\& & \\\text { Accounts } & & \\\text { Receivable } &\$ 6,000 & \$ 9,000\end{array}\end{array}$$

• A)$19,000.
• B)$29,000.
• C)$25,000.
• D)$22,000.

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Definitions:

Merchandise Inventory

Goods or products that a company holds with the intention of selling them to customers as part of its business operations.

Selling Expenses

Costs incurred directly and indirectly from selling a product or service, including sales commissions, advertising, promotional materials, and the salaries of sales staff.

Budgeted Net Income

The estimated net income a company expects to earn over a specific period, as outlined in its budget.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to assess whether a company has sufficient cash to fulfill its operations and obligations.