Parkway, Inc., had a $20,000 net loss from operations in 2019. Depreciation expense for 2019 was $63,200 and a 2019 cash dividend of $72,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2019 follow.
Did Parkway's 2019 operating activities provide or use cash and by what amount? Use the indirect method to determine your answer and show your work.

Question

Parkway, Inc., had a $20,000 net loss from operations in 2019. Depreciation expense for 2019 was $63,200 and a 2019 cash dividend of $72,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2019 follow.
  Did Parkway's 2019 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 Parkway, Inc., had a $20,000 net loss from operations in 2019. Depreciation expense for 2019 was $63,200 and a 2019 cash dividend of $72,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2019 follow.
  Did Parkway's 2019 operating activities provide or use cash and by what amount? Use the indirect method to determine your answer and show your work.