From the Following Information,calculate Net Cash Flow from Operating Activities

question 10

Multiple Choice

From the following information,calculate net cash flow from operating activities.
$$\begin{array}{l}\begin{array} { l r r } \text { Sales } & & \$ 185,000 \\\quad \text { Less Salaries } & \$ 40,000 & \\\text { Depreciation } & \$ 13,000 & \\\text { Other expenses } & \$ 10,000 & \\\text { Interest expense } & \$ \underline { 5, 000 } & \$ \underline { 68,000 } \\\text { Profit } & & \$ 117,000 \\\hline\end{array}\\\text { Statement of financial position extract }\\\begin{array} { l r r } & \text { Start of } & \text { End of } \\& \text { Period } & \text { Period } \\& \$ & \$ \\\text { Accounts payable } & 11,000 & 14,000 \\\text { Interest expense owing } & - & 1,000\end{array}\end{array}$$

• A) $134,000.
• B) $115,000.
• C) $128,000.
• D) $126,000.

---

Definitions:

Overhead Cost

Indirect expenses related to the operation of a business, such as rent, utilities, and administrative salaries, that are not directly tied to the production of goods or services.

Total Revenue

The complete amount of income generated by a business from its sales or services before any costs or expenses are subtracted.

Marginal Costs

The cost added by producing one additional unit of a product or service.

Disposable Income

The amount of money individuals or households have to spend or save after taxes have been deducted.