Indicate whether each of the following would be added to ordeducted from net inc
ID: 2445643 • Letter: I
Question
Indicate whether each of the following would be added to ordeducted from net income in determining net cash flow fromoperating activities by the indirect method. a. Gains on retirement of long-termdebt. h.Increase in notes receivable due in b. Increase in merchandiseinventory 90days from customers. c. Amortizatoin ofpatent i.Decrease in accounts payable d. Decrease in accountsreceivable J.Loss on disposal of fixed assets e. Depreciation of fexedassets k.Increase in notes payable due in 90 days f. Decrease in prepaidexpenses tovendors. g. Decrease in salaries payable Indicate whether each of the following would be added to ordeducted from net income in determining net cash flow fromoperating activities by the indirect method. a. Gains on retirement of long-termdebt. h.Increase in notes receivable due in b. Increase in merchandiseinventory 90days from customers. c. Amortizatoin ofpatent i.Decrease in accounts payable d. Decrease in accountsreceivable J.Loss on disposal of fixed assets e. Depreciation of fexedassets k.Increase in notes payable due in 90 days f. Decrease in prepaidexpenses tovendors. g. Decrease in salaries payableExplanation / Answer
a Gains on retirement of long-term debt Deducted b Increase in merchandise inventory Deducted c Amortization of patent Added d Decrease in Accounts Receivable Added e Depreciation of Fixed Assets Added f Decrease in Prepaid expenses Added g Decrease in Salaries Payable Added h Increase in Notes Receivable due in 90 days Deducted i Decrease in Accounts Payable Deducted j Loss on disposal of fixed Assets Added k Increase in Notes Payable due in 90 days Added