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13 Using the information below, the net cash flow from operating activities is: Cash received from customers $213 000 Cash paid for salaries and other

13 Using the information below, the net cash flow from operating activities is:

Cash received from customers
$213 000
Cash paid for salaries and other expenses
185 000
Cash received from the sale of equipment
12 000
Gain on the sale of equipment
8 000

inflow of $20 000.

inflow of $12 000.

inflow of $28 000.

inflow of $8 000.

14 Which of the following would assist an entity wanting to improve their cash flow?

Selling surplus inventory.

Investing surplus cash.

Utilising the available credit terms when paying suppliers.

All of the options listed would assist in improving cash flow.

15 From the information below, the total net cash flow from investing activities is:

Borrowed $15 000 cash

Sold motor vehicle $1400

Paid Income tax $20 000

Paid Dividends $8500

Received cash from customers $18 000

Cash purchase of furniture $2700

Depreciation on furniture $270

an inflow of $1400.

an outflow of $2700.

an inflow of $6500.

an outflow of $1300.

16 Which of the following statements is true?

For an entity to survive, the net cash flow from operating activities should be negative.

For an entity to survive, the net cash flow from investing activities should be positive.

For an entity to survive, the net cash flow from financing activities should be positive.

For an entity to survive, the net cash flow from operating activities should be positive.

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