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

question 14

Multiple Choice

Baxter Company reported a net loss of $13,000 for the year ended December 31, 2010. 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 2010, 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:

Employee Satisfaction

A measure of how content and fulfilled employees are with their job and working environment.

Empowerment

The process of giving power, authority, and confidence to employees, enabling them to take initiative and make decisions.

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization, including employees, customers, suppliers, and shareholders.

Community Involvement

Engagement of a company or its employees in activities and projects that benefit the society or environment in their local community.