Question

Stimpleton Company engages in the following cash payments: Purchase equipment $ 3,600 Pay rent 600 Repay loan to the bank 5,000 Pay workers’ salaries 500 What is the total amount of cash paid for operating activities?

Answer 1

Answer:

$1,100

Explanation:

The operating activities are the activities that are include day to day transaction which would result in cash receipts and the cash payments

The cash receipts would be in terms of received cash from customers and the cash payments would be salary expenses, utilities expenses, etc that are paid in cash.

So, the total amount of cash paid for operating activities is

= Rent paid + workers salaries paid

= $600 + $00

= $1,100