Buster Company reported a net loss of $6,000 for the year ended December 31, 2011.During the year, accounts receivable increased $14,000, merchandise inventory decreased $10,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded.During 2011, operating activities

Question

Quizplus · Accepted Answer

The net loss of $6,000 is adjusted for non-cash depreciation expense (+$10,000), increase in accounts receivable (-$14,000), decrease in inventory (+$10,000), and decrease in accounts payable (-$20,000), resulting in a net cash used of $20,000.

Buster Company Reported a Net Loss of $6,000 for the Year