Yowell company began operations on january 1, year 1. during year 1, the company engaged in the following cash transactions: 1) issued stock for $66,000 2) borrowed $38,000 from its bank 3) provided consulting services for $64,000 cash 4) paid back $28,000 of the bank loan 5) paid rent expense for $15,500 6) purchased equipment for $25,000 cash 7) paid $4,300 dividends to stockholders 8) paid employees' salaries of $34,000 what is yowell's net cash flow from operating activities?

The Yowell's net cash flow from operating activities is $14,500

Explanation:

In the direct method, the operating activities record revenues and expenses which are earned and incurred during a particular year.

The computation of the net cash flow from operating activities is shown below:

= Consulting services revenue - rent expense - employees' salaries expense

= $64,000 - $15,500 - $34,000

= $14,500

The other items which are mentioned in the question are related to the investing and the financing activities. So, these items would not be considered in the computation part.

answer; read and consider the content of the items;

answer production department;