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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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