Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year, accounts receivable decreased by $5,000, merchandise inventory increased by $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded. During the year, operating activities
A) provided net cash of $8,000
B) provided net cash of $2,000
C) used net cash of $8,000
D) used net cash of $2,000

Question

Baxter Company reported a net loss of $13,000 for the year ended December 31.  During the year, accounts receivable decreased by $5,000, merchandise inventory increased by $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded.  During the year, operating activities
A) provided net cash of $8,000
B) provided net cash of $2,000
C) used net cash of $8,000
D) used net cash of $2,000

Quizplus · Accepted Answer

The Answer of Baxter Company reported a net loss of $13,000 for the year ended December 31.  During the year, accounts receivable decreased by $5,000, merchandise inventory increased by $8,000, accounts payable increased by $10,000, and depreciation expense of $4,000 was recorded.  During the year, operating activities
A) provided net cash of $8,000
B) provided net cash of $2,000
C) used net cash of $8,000
D) used net cash of $2,000

Baxter Company Reported a Net Loss of $13,000 for the Year