Ask Question
19 May, 04:23

Which of the following should be subtracted from net income in calculating net cash flow from operating activities using the indirect method?

a. An increase in inventory

b. A decrease in prepaid expenses

c. A decrease in inventory

d. An increase in accrued expenses payable

+5
Answers (1)
  1. 19 May, 05:33
    0
    a. An increase in inventory

    An increase in inventory is an increase in the working capital which means more cash is being spent on buying inventory, therefore the addition to inventory is a decrease in cash flow when calculating cash flow using an indirect method.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following should be subtracted from net income in calculating net cash flow from operating activities using the indirect ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers