Answer:
Cash flow from operating activties 3,800,000
Explanation:
Cash collected from sales:(A) 21,000,000
Cash paid to supplier (B) (15,200,000)
Interest paid (1,000,000)
income taxes paid (1,000,000)
Cash flow from operating activties 3,800,000
(A)we use the sales and account receivable account
3,000,000 + 21,000,000 - 2,500,000 = 21,500,000
(B) we solve for purchases with COGS and inventory
purchases:
15,000,000 + 3,000,000 - 2,400,000 = 15,600,000
and now, with purchase along wiht account payable we solve for
paid to suppliers
1,000,000 + 15,600,000 - 1,400,000 = 15,200,000
