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Handley Mowers Prepares Its Statement of Cash Flows Using the Indirect

Question 65

Multiple Choice

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 2017:  Net loss ($6,000)  Increase in accounts receivable 2,400 Depreciation expense 3,500 Decrease in accounts payable 800 Loss on sale of investments 1,300 Payment of dividends 1,500\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 of investments } & 1,300 \\\text { Payment of dividends } & 1,500\end{array} How much is cash provided/(used) by operating activities?


A) $4,400
B) ($2,900)
C) ($4,400)
D) ($7,600)

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