Baxter Company reported a net loss of $16,150 for the year ended December 31. During the year, accounts receivable decreased by $4,508, merchandise inventory increased by $11,981, accounts payable increased by $8,286, and depreciation expense of $4,896 was recorded. During the year, operating activities under the indirect method

a. used net cash of $10,441

b. provided net cash of $10,441

c. used net cash of $16,150

d. provided net cash of $16,150