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:

Undisclosed Principal

A situation in which an agent acts on behalf of a principal, but the identity of the principal is not revealed to the third party at the time of the transaction.

Land Purchases

Transactions involving the buying of land property.

Walt Disney Productions

Walt Disney Productions is a historic name for The Walt Disney Company, an American diversified multinational entertainment and media conglomerate known for its film studio and theme parks.

Ratification

The official approval of a contract or agreement, making it valid and enforceable.