Flynn Company reported a net loss of $20,000 for the year ended December 31, 2008. During the year, accounts receivable decreased $10,000, merchandise inventory increased $16,000, accounts payable increased by $20,000, and depreciation expense of $10,000 was recorded. During 2008, operating activities*

A. used net cash of $4,000.

B. used net cash of $16,000.

C. provided net cash of $16,000.

D. provided net cash of $4,000.