Flynn Company reported a net loss of $30,000 for the year ended December 31, 2011.During the year, accounts receivable decreased $15,000, merchandise inventory increased $24,000, accounts payable increased by $30,000, and depreciation expense of $15,000 was recorded.During 2011, operating activities

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The net cash provided by operating activities is calculated by adjusting the net loss for changes in working capital and non-cash expenses. Starting with a net loss of $30,000, add back the depreciation expense of $15,000 (a non-cash charge), add the decrease in accounts receivable of $15,000 (cash inflow), subtract the increase in inventory of $24,000 (cash outflow), and add the increase in accounts payable of $30,000 (cash inflow). The net effect is a cash inflow of $6,000.

Flynn Company Reported a Net Loss of $30,000 for the Year