Question

Skysong, Inc. reported a net loss of $12300 for the year ended December 31, 2022. During the year, accounts receivable decreased $6150, inventory increased $9840, accounts payable increased by $12300, and depreciation expense of $7380 was recorded. During 2022, operating activities provided net cash of $8610. provided net cash of $3690. used net cash of $8610. used net cash of $3690.

Answer 1

Solution:

• The answer is provided net cash of $ 3,690.

Given data:

• Net loss = $ 12,300
• Accounts receivable decreased = $ 6,150
• Inventory increased = $ 9,840
• Accounts payable increased = $ 12,300
• Depreciation expenses = $ 7,380

Cash flows from Operating activities during the year 2022:

Particulars	Amount	Amount
Net income (loss)		($12,300)
Add:
Accounts receivable decreased	$ 6,150
Accounts payable increased	$ 12,300
Depreciation expenses	$ 7,380
Less:
Inventory increased	$ 9,840
Net cash provided from Operating activities	= - ($ 12,300) +$ 6,150+$ 12,300+ $ 7,380 - $ 9,840 = $ 3,690	$ 3,690