Handley Mowers prepares its statement of cash flows using the indirect method. The following information was taken from its income statement and balance sheet for 2014: $\begin{array}{lr}
\text { Net loss } & (\$ 6,000) \
\text { Increase in accounts receivable } & 2,400 \
\text { Depreciation expense } & 3,500 \
\text { Decrease in accounts payable } & 800 \
\text { Loss on sale ofinvestments } & 1,300 \
\text { Payment of dividends } & 1,500
\end{array}$ How much is cash provided/(used) by operating activities?

Question

Quizplus · Accepted Answer

The cash flow from operating activities is calculated as: Net loss (-$6,000) + Depreciation expense ($3,500) - Increase in accounts receivable (-$2,400) - Decrease in accounts payable (-$800) + Loss on sale of investments ($1,300) = -$4,400.

Handley Mowers Prepares Its Statement of Cash Flows Using the Indirect