I will appreciate if someone can help me with the procediment to find this answe

Question

I will appreciate if someone can help me with the procediment to find this answer

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

used net cash of $8,000

provided net cash of $8,000

provided net cash of $2,000

used net cash of $2,000 Correct answer

Explanation / Answer

Less- Increase in assets and decrease in liabilities

         stock

(8000)

cash outflow from operating activities                                                    $2000

Particulars Amount ($) Net Loss (13000) Depriciation expense 4000 ADD- Decrease in assets and increase in liabilities         bills receivable 5000         bills payable 10000

Less- Increase in assets and decrease in liabilities

         stock

(8000)

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