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
Cash	$3,500	$7,000
Accounts receivable	16,000	27,000
Inventory	51,000	53,000
Prepaid expenses	5,000	9,000
Accounts payable	12,000	8,000
Accrued liabilities	6,000	7,600

Did Zaire Companys 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		Answer
	Add (deduct) items to convert net loss to cash basis
	Depreciation		Answer
	Accounts Receivable	AnswerIncreaseDecrease	Answer
	Inventory	AnswerIncreaseDecrease	Answer
	Prepaid Expenses	AnswerIncreaseDecrease	Answer
	Accounts Payable	AnswerIncreaseDecrease	Answer
	Accrued Liabilities	AnswerIncreaseDecrease	Answer
	Cash Provided/(Used) by Operating Activities		Answer