Calculating Net Cash Flow from Operating Activities (Indirect Method) Weber Company had a $42,000 net loss from operations for 2016. Depreciation expense for 2016 was $17,200 and a 2016 cash dividend of $12,000 was declared and paid. Balances of the current asset and current liability accounts at the beginning and end of 2016 follow. Did Weber Company's 2016 operating activities provide or use cash? Use the indirect method to determine your answer. Ending Beginning Cash $7,000 $14,000 Accounts Receivable 32,000 50,000 Inventory 100,000 106,000 Prepaid Expenses 12,000 18,000 Accounts Payable 24,000 16,000 Accrued Liabilities 10,000 15,200 Notes: Use a negative sign with your answer to show that an asset or liability decreased during the year. (For example, you would use a negative sign with your accounts receivable answer.) When the change in an operating asset is negative, subtracting that negative amount results in a positive adjustment. Net loss Add (deduct) items to convert net loss to cash basis Add back depreciation Subtract change in operating assets: Accounts receivable Inventory Prepaid expenses Add change in operating liabilities: Accounts payable Accrued liabilities Net cash provided by operating activities Weber Company's 2016 operating activities cash