Tuncurry Ltd reported a loss of $15,000 for the year ended December 31. During the year, accounts receivable decreased $6,000, merchandise inventory increased $4,000, accounts payable increased by $5,000, and depreciation expense of $3,000 was recorded. During the year, operating activities:
A) used net cash of $3,000.
B) used net cash of $5,000.
C) provided net cash of $5,000.
D) provided net cash of $3,000.

Question

Quizplus · Accepted Answer

During the year, operating activities provided a net cash flow of: - $15,000 + 6,000 - 4,000 + 5,000 + 3,000 = $2,000.

Tuncurry Ltd Reported a Loss of $15,000 for the Year