Hunter Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable decreased $14,000, inventory increased $10,000, accounts payable increased by $15,000, and depreciation expense of $12,000 was recorded. During 2014, operating activities
A) used net cash of $7,000.
B) used net cash of $25,000.
C) provided net cash of $25,000.
D) provided net cash of $37,000.

Question

Quizplus · Accepted Answer

Operating activities provided net cash of $25,000. The net loss of $6,000 is added to the $14,000 decrease in accounts receivable and the $10,000 increase in inventory to arrive at $25,000.

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