Question

Waite Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $24,000 in cash dividends during the year. The following questions pertain to the company's statement of cash flows. The net cash provided by (used in) operating activities last year was: Select one: a. $56,000 b. $79,000 c. $86,000 d. $33,000

Answer 1

Answer:

c. $86,000

Explanation:

The operating activities in the cash flow is the area where day to day business activities are recorded. This area mainly covers the cash incoming and outgoing due to regular business activities. The company paid dividends to its shareholders this will be considered as a financing activity as it is not of regular nature.