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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