Adama Company Reported a Net Loss of $6,000 for the Year

question 41

Multiple Choice

Adama Company reported a net loss of $6,000 for the year ended December 31, 2017.During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $12,000 was recorded.During 2017, operating activities

• A)used net cash of $17,000.
• B)used net cash of $29,000.
• C)provided net cash of $24,000.
• D)provided net cash of $21,000.

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Definitions:

Long Run

In economics, a period in which all factors of production and costs are variable, and firms can enter or exit the market.

Resources Fixed

A situation in an economic model where the availability of resources is constant and unchanging over time.

Output Variable

A variable that represents the result or outcome of a process or model.

Production Capacity

The maximum output that a company or economy can produce under normal conditions within a given period, often influenced by available resources and technology.