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Cairo Company had a $52,500 net loss from operations. Depreciation expense for the year was $21,500, and a dividend of $15,000 was declared and paid.

Cairo Company had a $52,500 net loss from operations. Depreciation expense for the year was $21,500, and a dividend of $15,000 was declared and paid. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year Beginning of Year
Cash $8,750 $17,500
Accounts receivable 40,000 62,500
Inventory 125,000 132,500
Prepaid expenses 15,000 22,500
Accounts payable 30,000 20,000
Accrued liabilities 12,500

19,000

a. Did Cairo Company's operating activities provide or use cash?

b. How much?

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