Colby Company has provided the following selected information for the year ended December 31,2019:
Cash collected from customers was $392,000.
Cash received from stockholders in exchange for stock totaled $46,000.
Cash paid to suppliers was $183,000.
Cash paid to employees was $102,000.
Cash received from a long-term bank loan was $75,000.
Cash paid to stockholders for dividends was $17,000.
Cash received from sale of a building was $125,000.
Cash paid for rent was $19,000.
Cash received for interest and dividends was $4,000.
Cash paid for income taxes was $28,000.
Based on the selected information provided,calculate Colby's cash flow from operating activities.

Question

Jennifer Narvaez · Accepted Answer

Final Answer :

Cash flow from operating activities = $64,000 = $392,000 - $183,000 - $102,000 - $19,000 + $4,000 - $28,000.
Cash received from stockholders in exchange for stock and cash received from a long-term bank loan are financing activities.
Cash received from sale of a building is an investing activity.

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