Question

Garret Company has provided the following selected information for the year ended December 31, 2019: Cash collected from customers was $784,000. Cash received from stockholders in exchange for common stock totaled $84,000. Cash paid to suppliers was $368,000. Cash paid to employees was $208,000. Cash to stockholders for dividends was $48,000. Cash received from sale of a building was $240,000. Cash paid for store rent was $34,000. Cash received for interest and dividends was $7,000. Cash paid for income taxes was $54,000. Based on the selected information provided, how much was Garret's cash flow from operating activities

Answer 1

Answer:

The amount Garret's cash flow from operating activities is $127,000.

Explanation:

The amount of Garret's cash flow from operating activities can be calculated as follows:

Garret Company

Computation of Cash Flow from Operating Activities

For the year ended December 31, 2019

Details                                                                       $              

Cash collected from customers                         784,000

Cash paid to suppliers                                      (368,000)

Cash paid to employees                                   (208,000)

Cash paid for store rent                                      (34,000)

Cash received for interest and dividends            7,000

Cash paid for income taxes                                (54,000)  

Cash flow from operating activities                 127,000  

Therefore, the amount Garret's cash flow from operating activities is $127,000.