Add to net income Deduct from net income Omit from computation

Add to net income

Subtract to net income

Omit from computation

e. foreseeable future and will instead distribute stock dividends. LO13-6, LOI3-7 EXERCISE 13.9 An Analysis of Possible Reconciling Items a tornado that destroyed a factory building. b. Depreciation for the year amounted to $9 million. c. During the year, $2 million in cash was transferred from the company's checking account into a money market fund. d. Accounts receivable from customers increased by $3.5 million over the year. Cash received from customers during the year amounted to $169 million. f. Prepaid expenses decreased by $1 million over the year. g. Dividends declared during the year amounted to $8 million; dividends paid during the year amounted to $6 million. h. Accounts payable (to suppliers of merchandise) increased by $2.7 million during the year. i. The liability for accrued income taxes payable amounted to $5 million at the beginning of the year and $3 million at year-end. In the computation of net cash flows from operating activities by the indirect method, explain whether each of the above items should be added to net income, deducted from net income, or omil- ted from the computation. Briefly explain your reasons for each answer. Arapidly growing sollware company announces that it will stop paying cash dividends for the An analysis of the annual financial statements of O'Connell Corporation reveals the following: The company had a $5 million extraordinary loss from insurance proceeds received due to