Question

Compute RVD​'s net cash provided by​ (used for) operating activities during July 2018.

Use the indirect method. ​(Use a minus sign or parentheses for amounts that result in a decrease in cash and to show net cash used for operating activities. If a box is not used in the table leave the box​ empty; do not select a label or enter a​ zero.)

Account	Beginning Balance			Ending Balance
Cash		$6,500			$3,500
Accounts Receivable		18,000			13,000
Merchandise Inventory		21,000			24,500
Accounts Payable		14,500			20,500

Accumulated Depreciation—
Equipment					Retained Earnings
		51,000	Jul. 1				61,000	Jul. 1
		2,500	Depr. Exp.		Dividends	19,000	45,000	Net Inc.
		53,500	Jul. 31				87,000	Jul. 31

Answer 1

Statement of Cash Flows (Partial)
For the Month Ended July 2018
Cash flows from operating activities:
Net income		$45,000
Adjustments to Reconcile Net Income to Net Cash
Provided by (used for) operating activities
Depreciation Expenses	$2,500
Decrease in Accounts Receivable	$5,000
Increase in Merchandise Inventory	($3,500)
Increase in Accounts Payable	$6,000	$10,000
Net cash provided by (used for) operating activities		$55,000