Answer:
Net Cash Inflow from Operating Activities = $16,000
Explanation:
In the given information, it is not provided that cash is paid or not for Supplies, thus, assumed it was paid at the time of acquisition, and not in the current period when it is only charge to expense.
In that case, Cash generated from operating activities using direct method, shall be:
Cash flow from Operating Activities
Cash revenue collected = $70,000
Cash collected in advance = $2,000
Total cash inflow = $72,000
Cash paid for salaries = - $35,000
Cash paid for advertising expense = - $10,000
Cash paid for utilities = - $11,000
Total Cash outflow = - $56,000
Net Cash Inflow from Operating Activities = $16,000
