Question

Coronado Company reported a net loss of $6500 for the year ended December 31, 2019. During the year, accounts receivable increased $15000, inventory decreased $12200, accounts payable decreased by $19900, and depreciation expense of $11900 was recorded. During 2019, operating activities:

a. used net cash of $2,000
b. provided net cash of $8,000
c. provided net cash of $2,000
d. used net cash of $8,000

Answer 1

All the options are incorrect.

Step-by-step explanation:

According to the operating activities section of statement of cash flows, the following statement is as follows:

Net Loss ($6,500)

Cash flow from operating activities:

Depreciation expense $11,900

Accounts receivable increased ($15,000)

Inventory decreased $12,200

Accounts payable decreased ($19,900)

Net cash changes in operating activities ($10,800)

Cash flow used by* operating activities ($17,300)

None of the options are correct. Therefore, Cash flow used by* operating activities = ($17,300).