Mall Star, Inc., had a $10,000 net loss from operations in the current year. Depreciation expense was $31,600 and a cash dividend of $36,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of the year follow.

Did Mall Star's operating activities provide or use cash and by what amount? Use the indirect method to determine your answer and show your work.

Question

Mall Star, Inc., had a $10,000 net loss from operations in the current year. Depreciation expense was $31,600 and a cash dividend of $36,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of the year follow.
  
Did Mall Star's 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 Mall Star, Inc., had a $10,000 net loss from operations in the current year. Depreciation expense was $31,600 and a cash dividend of $36,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of the year follow.
  
Did Mall Star's operating activities provide or use cash and by what amount? Use the indirect method to determine your answer and show your work.