Question

Jackson company recorded the following cash transactions for the year:
Paid 135,000 for salaries
Paid $60,000 to purchase office equipment.
Paid $15,000 for utilities.
Paid $6,000 in dividends.
Collected $245,000 from customers.
What was Jackson’s net cash provided by operating activities?

Answer 1

Answer:

$95,000

Explanation:

Jackson's net cash provided by operating activities is calculated below;

Cash collected from customers

$245,000

Less : Salaries paid. ($135,000)

Less utilities ($15,000)

Net cash provided. $95,000