Cash Flow from Operating Activities (Indirect Method) Cairo Company had a $24,000 net loss from...
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Accounting
Cash Flow from Operating Activities (Indirect Method) Cairo Company had a $24,000 net loss from operations. Depreciation expense for the year was $8,600, and a dividend of $6,000 was declared and paid. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End
Beginning
Cash
$4,550
$9,100
Accounts receivable
20,800
32,500
Inventory
65,000
68,900
Prepaid expenses
7,800
11,700
Accounts payable
15,600
10,400
Accrued liabilities
6,500
9,880
Did Cairo Company's operating activities provide or use cash? Use the indirect method to determine your answer.
Use negative signs with cash outflow answers.
Net Loss
$Answer
Add (deduct) items to convert net loss to cash basis
Depreciation
Answer
Accounts Receivable
AnswerIncreaseDecrease
Answer
Inventory
AnswerIncreaseDecrease
Answer
Prepaid Expenses
AnswerIncreaseDecrease
Answer
Accounts Payable
AnswerIncreaseDecrease
Answer
Accrued Liabilities
AnswerIncreaseDecrease
Answer
Cash Provided by Operating Activities
$Answer
Cairo Company's operating activities
AnswerProvidedUsed
$Answer cash.
Please answer all parts of the question.
Answer & Explanation
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