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27 August, 14:19

Ansewrs Sheffield Company reported a net loss of $5500 for the year ended December 31, 2017. During the year, accounts receivable increased $14500, inventory decreased $11500, accounts payable decreased by $20300, and depreciation expense of $12100 was recorded. During 2017, 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

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  1. 27 August, 17:59
    0
    Net Cash flow from Operating activities - $16,700

    Explanation:

    The preparation of the Cash Flows from Operating Activities-Indirect Method is shown below:

    Cash flow from Operating activities - Indirect method

    Net loss - $5,500

    Adjustment made:

    Add : Depreciation expense $12,100

    Less: Increase in accounts receivable - $14,500

    Add: Decrease in inventory $11,500

    Less: Decrease in accounts payable - $20,300

    Total of Adjustments - $11,200

    Net Cash flow from Operating activities - $16,700

    This is the answer and the same is not provided in the given options
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