QUESTION 3 Adam Company reported a net income of $8,000 for the year ended December 31, 2021. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded. During 2021, operating activities a, provided net cash of $3,000. b.used net cash of $5,000. c. used net cash of $15,000. d. used net cash of $2,000.
QUESTION 3 Adam Company reported a net income of $8,000 for the year ended December 31, 2021. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $10,000 was recorded. During 2021, operating activities a, provided net cash of $3,000. b.used net cash of $5,000. c. used net cash of $15,000. d. used net cash of $2,000.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 21E
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