Ask Question
1 August, 03:45

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. 1 August, 04:13
    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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers