Applegate Ltd

question 20

Multiple Choice

Applegate Ltd. reported a loss of $10,000 for the year. During the year, accounts receivable decreased $3,000, inventory increased $5,000, accounts payable increased by $11,000, and depreciation expense of $6,000 was recorded. Using the indirect method, operating activities

• A) used net cash of $23,000.
• B) used net cash of $17,000.
• C) provided net cash of $5,000.
• D) provided net cash of $15,000.