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Alpha Chem Co. reported the following information for the year ended December 31, 2019. 1. Accounts payable decreased during the year by $4,000; 2. Inventory
Alpha Chem Co. reported the following information for the year ended December 31, 2019. 1. Accounts payable decreased during the year by $4,000; 2. Inventory increased during the year by $2,000; 3. Alpha Chem Co. has no accounts receivable, as all sales are cash sales; 4. Net income for the year was $2,500; 5. On December 30, 2019, Alpha Chem Co. sold a piece of equipment for $3,000 that originally cost $6,000. The accumulated depreciation on this piece of equipment at the time of its sale was $4,000. 6. The total Accumulated depreciation on Alpha Chem Co.'s equipment decreased from $10,000 at December 31, 2018 to $8,000 at December 31, 2019. On the 2019 statement of cash flows, cash flow from operating activities should be reported as (negative numbers are shown in parentheses) O (a) ($2,500) (b) ($1,500) (c) $1,500 (d) $2,500 (e) None of the above
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