Buster Company Reported a Net Loss of $9,000 for the Year

question 27

Multiple Choice

Buster Company reported a net loss of $9,000 for the year ended December 31, 2014. During the year, accounts receivable increased $21,000, inventory decreased $15,000, accounts payable decreased by $30,000, and depreciation expense of $15,000 was recorded. During 2014, operating activities

• A) used net cash of $30,000.
• B) used net cash of $42,000.
• C) provided net cash of $42,000.
• D) provided net cash of $27,000.

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Definitions:

Manufacturing Costs

Expenses related to the production of goods, including labor, materials, and overhead costs.

Completed Jobs

The number of tasks, projects, or orders that have been finished within a specified period.

Incomplete Jobs

Tasks or projects that have been started but not yet finished, often requiring further inputs of resources or time to complete.

Indirect Cost

Expenses not directly tied to a specific product or service, such as overhead costs like utilities or rent.