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Zaire Company had a $26,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $2,000 was declared and paid.
Zaire Company had a $26,000 net loss from operations. Depreciation expense for the year was $9,600, and a dividend of $2,000 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 Beginning $3,500 $7,000 Cash Accounts receivable 16,000 27,000 51,000 53,000 9,000 Inventory Prepaid expenses Accounts payable Accrued liabilities 5,000 12,000 6,000 8,000 7,600 Did Zaire Company's operating activities provide or use cash? Use the indirect method to determine your answer. Use negative signs with cash outflow answers and to indicate operating activities used cash, if applicable. Net Loss Add (deduct) items to convert net loss to cash basis Depreciation Accounts Receivable Inventory Prepaid Expenses Accounts Payable Accrued Liabilities Cash Provided/(Used) by Operating Activities $
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