Question

Nelson Company experienced the following transactions during Year 1, its first year in operation.Issued $9,200 of common stock to stockholdersProvided $5,500 of services on accountPaid $2,400 cash for operating expensesCollected $3,500 of cash from accounts receivablePaid a $260 cash dividend to stockholdersWhat is the of net cash flow from operating activities shown on the Year 1 statement of cash flows

Answer 1

Answer:

the net cash flow from operating activities for the year 1 is $1,100

Explanation:

The computation of the net cash flow from operating activities is shown below:

= Cash collection from account receivable - cash paid for the operating expenses

= $3,500 - $2,400

= $1,100

Hence, the net cash flow from operating activities for the year 1 is $1,100

We simply applied the above formula so that the correct value could come

And, the same is to be considered