Ansewrs Sheffield Company reported a net loss of $5500 for the year ended December 31, 2017. During the year, accounts receivable increased $14500, inventory decreased $11500, accounts payable decreased by $20300, and depreciation expense of $12100 was recorded. During 2017, operating activities

a. used net cash of $2,000

b. provided net cash of $8,000

c. provided net cash of $2,000

d. used net cash of $8,000

Question

Johanna Villa

Business

14 December, 23:37

Ansewrs Sheffield Company reported a net loss of $5500 for the year ended December 31, 2017. During the year, accounts receivable increased $14500, inventory decreased $11500, accounts payable decreased by $20300, and depreciation expense of $12100 was recorded. During 2017, operating activities

a. used net cash of $2,000

b. provided net cash of $8,000

c. provided net cash of $2,000

d. used net cash of $8,000

+5

Answers (1)

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Lou · Answer 1

Net Cash flow from Operating activities - $16,700

Explanation:

The preparation of the Cash Flows from Operating Activities-Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net loss - $5,500

Adjustment made:

Add : Depreciation expense $12,100

Less: Increase in accounts receivable - $14,500

Add: Decrease in inventory $11,500

Less: Decrease in accounts payable - $20,300

Total of Adjustments - $11,200

Net Cash flow from Operating activities - $16,700

This is the answer and the same is not provided in the given options