Question

Marigold Corp. reported a net loss of $12300 for the year ended December 31, 2017. During the year, accounts receivable decreased $6150, inventory increased $9840, accounts payable increased by $12300, and depreciation expense of $7380 was recorded. During 2017, operating activities ________.

Answer 1

See below

Step-by-step explanation:

Computation of operating activities

Net loss

($12,300)

Add:

Depreciation expense

$7,380

Accounts payable increase

$12,300

Accounts receivable decreased

$6,150

Less:

Inventory increased

($9,840)

Operating activities

$3,690

Therefore, during 2017 operating activities used net cash of $3,690