Answer:
Net cash flow from operating activities = $62,200
Explanation:
EZ Company
Statement of Cash Flow
Particulars Amount ($)
Net Income 50,000
Net cash flow from operating activities:
Depreciation expense 7,000
Amortization of patent 500
Amortization of premium on bonds 1,000
Decrease in accounts receivable 2,000
Increase in inventory (1,500)
Decrease in salaries payable (800)
Increase in accounts payable <u> 4,000</u>
Net cash used or provided <u> 12,200</u>
Net cash flow from operating activities =$62,200
Cash dividend is a financing activities, that is why it is not added or deducted in the operating activities.
