Arundel Company disclosed the following information for its recent calendar year.

Required 1. Prepare the operating activities section of the statement of cash flows using the indirect method.
2. What were the major reasons that this company was able to report a net loss but positive cash flow from operations?
3. Of the potential causes of differences between cash flow from operations and net income, which are the most important to investors?

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Revenues.... Expenses Salaries expense Utilities expense Depreciation expense Other expenses Net loss.... Accounts receivable decrease Purchased a machine..... Salaries payable increase Other accrued liabilities decrease $100,000 84,000 14,000 14,600 3,400 $ (16,000) $ 24,000 10,000 18,000 8,000