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Question: Northwestern Company entered into the following transactions during 2009:

a.The company was started when it issued common stock for $8,000 cash.
b.The company purchased land on January 1 that cost $5,800.
c.Northwestern purchased $300 of supplies on account.
d.Northwestern earned $6,200 of revenue on account.
e.Cash collections of receivables were $5,500.
f.On October 1, 2009, Northwestern paid $1,200 in advance for a one-year insurance policy.
Adjusting entry information:
g.Supplies on hand as of December 31, 2009, amounted to $100.
h.Recognized insurance expense.

10.The amount of cash flow from operating activities for 2009 would be
a.$(5,800).
b. $4,300.
c. $5,500.
d. $6,500.

Answer:
Try c. because e. looks to be the only one mentioning cash

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