A company that had a $500 increase in accounts receivable during a period would

do which of the following on its statement of cash flows prepared using the

indirect method?

a.Add the $500 to net income in order to arrive at net cash provided by operating

activities.

b.Deduct the $500 from net income in order to arrive at net cash provided by

operating activities.

c.Show the $500 in an accompanying schedule as a direct exchange transaction.

d.Show nothing relating to the $500 either on the statement of cash flows or any schedule accompanying the statement of cash flows.