Little Kerry Inc. had a $64,000 net loss from operations in 2016. Depreciation expense for 2016 was $126,400 and a 2016 cash dividend of $144,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2016 follow.
Did Little Kerry's 2016 operating activities provide or use cash and by what amount? Use the indirect method to determine your answer and show your work.

Question

Little Kerry Inc. had a $64,000 net loss from operations in 2016. Depreciation expense for 2016 was $126,400 and a 2016 cash dividend of $144,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2016 follow.
  Did Little Kerry's 2016 operating activities provide or use cash and by what amount? Use the indirect method to determine your answer and show your work.

Quizplus · Accepted Answer

The Answer of Little Kerry Inc. had a $64,000 net loss from operations in 2016. Depreciation expense for 2016 was $126,400 and a 2016 cash dividend of $144,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2016 follow.
  Did Little Kerry's 2016 operating activities provide or use cash and by what amount? Use the indirect method to determine your answer and show your work.