Buster Company reported a net loss of $6,000 for the year ended December 31, 2011. During the year, accounts receivable increased $14,000, merchandise inventory decreased $10,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded. During 2011, operating activities a. used net cash of $20,000. b. used net cash of $28,000. C. provided net cash of $28,000. d. provided net cash of $18,000.
Buster Company reported a net loss of $6,000 for the year ended December 31, 2011. During the year, accounts receivable increased $14,000, merchandise inventory decreased $10,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded. During 2011, operating activities a. used net cash of $20,000. b. used net cash of $28,000. C. provided net cash of $28,000. d. provided net cash of $18,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Buster Company reported a net loss of $6,000 for the year ended December 31, 2011.
During the year, accounts receivable increased $14,000, merchandise inventory
decreased $10,000, accounts payable decreased by $20,000, and depreciation expense
of $10,000 was recorded. During 2011, operating activities
a. used net cash of $20,000.
b. used net cash of $28,000.
C. provided net cash of $28,000.
d. provided net cash of $18,000.
73.
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