Applegate Ltd.reported a loss of $10,000 for the year.During the year, accounts receivable decreased by $3,000, inventory increased by $5,000, accounts payable increased by $11,000, and depreciation expense of $6,000 was recorded.Using the indirect method, operating activities
A)used net cash of $23,000.
B)used net cash of $17,000.
C)provided net cash of $5,000.
D)provided net cash of $15,000.

Question

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The net loss of $10,000 is adjusted for non-cash expenses and changes in working capital. Add back depreciation of $6,000, add the decrease in accounts receivable of $3,000, subtract the increase in inventory of $5,000, and add the increase in accounts payable of $11,000. This results in a net cash provided by operating activities of $5,000.