Reference no: EM132802624

Below is information relating to Ella & Annie Company for the year ended December 31, 2018.

1. Net income for the year 2018 was $5,000. Depreciation expense included in net income was $8,000.
2. Accounts receivable decreased $2,000, while inventories increased $4,000.
3. Accounts payable decreased $7,000.
4. During the year, a piece of land held for future expansion was sold for its book value of $8,000 and a new service truck was purchased for $14,000.
5. The company borrowed $18,000 on a two-year note from the bank.
6. Dividends of $6,000 were paid in cash.
7. Preferred stock was issued to retire $7,000 of long-term notes payable.
8. The beginning cash balance was $22,000 and the ending balance was $32,000.

Problem 1: Following the indirect method, what is the net cash flows provided/used by operating activities? If it is a positive number (i.e., net cash inflow), please enter as a positive. If it is negative (i.e., net cash outflow), be sure to put a negative sign in front of your answer.