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

question 108

Multiple Choice

Baxter Company reported a net loss of $13,000 for the year ended December 31. During the year, accounts receivable decreased by $5,000, 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

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Definitions:

Low Complexity Level

Projects or tasks that are simple and straightforward to complete, often requiring minimal resources and less intricate planning.

Decision-making Procedures

Systematic approaches or methods employed to make choices among various alternatives to guide actions toward achieving a goal.

Surfacing Issues

The act of identifying and bringing to attention unresolved problems or disagreements within a project or organization.

Management Team

A group of individuals leading and making strategic decisions for an organization, ensuring its operations align with set goals.