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can you give me the answer and explain why?also can you explain why A is incorrect. thx24. A Company recorded the following cash transactions for the year: Paid $90,000 for salaries. Paid $40,000 to purchase offi

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  • Correct Answer = Option ‘E’ None of the choices are correct.
  • Net Cash provided by Operating activities includes ONLY cash transaction that are related to general operation of business.
  • Transactions like purchase of equipment (investing), payment of dividends (financing), depreciation expense (non cash) are not operating activities Cash transaction.
  • Hence, correct net cash provided by Operating activities
    = $ 140000 collected from customer - $ 90000 paid for salaries – $ 10000 paid for utilities
    = $ 40,000
  • $ 40000 is not matching any of the Options.
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