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Cash Flow from Operating Activities (Indirect Method) Zaire Company had a $26,000 net loss...

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Accounting

Cash Flow from Operating Activities (Indirect Method)

Zaire Company had a $26,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $2,000 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 $3,500 $7,000
Accounts receivable 16,000 27,000
Inventory 51,000 53,000
Prepaid expenses 5,000 9,000
Accounts payable 12,000 8,000
Accrued liabilities 6,000 7,600

Did Zaire Companys operating activities provide or use cash? Use the indirect method to determine your answer.

Use negative signs with cash outflow answers and to indicate operating activities used cash, if applicable.

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/(Used) by Operating Activities Answer

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