Ask Question
20 June, 18:58

Presley, Inc., had the following positive and negative cash flows during the current year. Positive cash flows: Received from customers $ 270,000 Interest and dividends 50,000 Sale of plant assets 360,000 Negative cash flows: Paid to suppliers and employees $ 127,000 Purchase of investments 45,000 Purchase of treasury stock 40,000 Determine the amount of cash provided by or used for operating activities by the direct method.

+5
Answers (1)
  1. 20 June, 22:29
    0
    The amount of cash provided by operating activities is $143,000

    Explanation:

    Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

    Cash flows from operating activities

    Received from customers $270,000

    Paid to suppliers and employees ($127,000)

    Cash Provided By operating activities $143,000

    Following cash flows relate from the investing and financing activities

    Sale of plant assets 360,000

    Purchase of investments 45,000

    Interest and dividends 50,000

    Purchase of treasury stock 40,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Presley, Inc., had the following positive and negative cash flows during the current year. Positive cash flows: Received from customers $ ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers