Question

Additional information provided by the company includes the​ following: 1. Current​ assets, other than​ cash, increased by $ 22 comma 000. 2. Current liabilities decreased by $ 1 comma 100. Compute the net cash provided by​ (used for) operating activities.

Answer 1

Answer:

Net cash used in operating activities = $20,900

Explanation:

There is a prescribed treatment of increase in current assets and current liabilities, if there is any increase in current assets such increase is deducted from operating cash flow,

and any decrease in current liabilities is added as a step to calculate cash flow from operating activities.

Therefore with this we have

Net Operating cash Flow

Less: Increase in current assets = ($22,000)

Add: Decrease in Current Liabilities = $1,100

Net cash used in operating activities = $20,900