Catalina Company Reported a Net Loss of $15,000 for the Year

question 73

Multiple Choice

Catalina Company reported a net loss of $15,000 for the year ended December 31, 2017. During the year, accounts receivable decreased $7,500, inventory increased $12,000, accounts payable increased by $15,000, and depreciation expense of $9,000 was recorded. During 2017, operating activities

• A)used net cash of $4,500.
• B)used net cash of $10,500.
• C)provided net cash of $4,500.
• D)provided net cash of $10,500.

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Definitions:

Liquidating a Partnership

The process of terminating a partnership by selling off assets, paying off creditors, and distributing the remaining assets to partners.

Divide Profits

The process of allocating earnings among shareholders, partners, or other stakeholders according to their ownership interests or agreement terms.

Remaining Cash

The amount of cash a business has after all expenses and distributions have been made.

Revaluation

The process of adjusting the book value of an asset to reflect its current market value.