Calculate Net Cash Flow from Operating Activities If: Statement of Financial

question 3

Multiple Choice

Calculate net cash flow from operating activities if: Statement of financial performance (extract)
$\begin{array}{ll}\text { Sales (credit) } & \$ 80,000 \\\text { Less Expenses (cash) } & \$ 48,000 \\\text { Profit } & \$ 32,000\end{array}$ Ledger account (extract)
$\begin{array}{lll} & \text { Start of } & \text { End of } \\& \text { Period } & \text { Period } \\\text { Accounts receivable } & \$ 6000 & \$ 9000\end{array}$

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

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Definitions:

Direct Materials

Raw materials that are directly traceable and allocable to the production of specific goods or services.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for subsequent modification or transformation into finished goods.

Direct Labor

The workforce directly involved in product manufacturing, whose labor is easily traced to the product itself.

Wages of Supervisors

Compensation paid to individuals who oversee and manage the work of others within an organization.