Consider the following items:
(a) Decrease in accounts receivable (f) Gain on the sale of equipment
(b) Issuance of common stock (g) Depreciation expense
(c) Increase in interest receivable (h) Payment of dividends
(d) Purchase of land (i) Decrease in utilities payable
(e) Decrease in accounts payable (j) Increase in inventory
How many of these items would be subtracted from net income when using the indirect method to prepare the operating activities section of the statement of cash flows?
Answers: 2
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Consider the following items:
(a) Decrease in accounts receivable (f) Gain on the sale of equipment...
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