Accounts Receivable Decrease Merchandise Inventory Increase Mortgage Payable Decrease Accounts Payable Increase The following accounts showed an increase or a decrease from the comparative balance sheet. Explain which account will be added to net income and which will be subtracted in calculating net cash flows for operating activities using the indirect method a. Accounts Receivable: Decrease b. Merchandise Inventory: Increase e. Mortgage Payable: Decrease d. Accounts Payable: Increase