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2) Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by

2) Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:

Indicate Added (A)

or

Deducted (D)

from Net Income

Increase in prepaid expenses

Amortization of patents

Increase in salaries payable

Gain on sale of fixed assets

Decrease in accounts receivables

Increase in notes receivables due in 60 days

Decrease in merchandise inventory

Depreciation of fixed assets

Decrease in accounts payable

Increase in income taxes payable

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