Impact of Transactions Involving Inventories on Statement of Cash Flows From the following list, identify whether the change in the account balance during the year is added to (A) or deducted from (D) net income when the indirect method is used to determine cash fl ows from operating activities.

_________ Increase in accounts payable _________ Decrease in accounts payable _________ Increase in inventories _________ Decrease in inventories.

AppendixLO1