Labi Company reported a net loss of $13,000 for the year ended December 31, 2021. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2021, operating activities* A. used net cash of $8,000. B. provided net cash of $8,000. C. provided net cash of $1,000. D. used net cash of $1,000.
Labi Company reported a net loss of $13,000 for the year ended December 31, 2021. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2021, operating activities* A. used net cash of $8,000. B. provided net cash of $8,000. C. provided net cash of $1,000. D. used net cash of $1,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Labi Company reported a net loss of $13,000 for the year ended December 31, 2021. During the year, accounts receivable decreased $5,000, merchandise inventory increased $8,000, accounts payable increased by $10,000, and depreciation expense of $5,000 was recorded. During 2021, operating activities*
A. used net cash of $8,000.
B. provided net cash of $8,000.
C. provided net cash of $1,000.
D. used net cash of $1,000.
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