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Adjustment Options: Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid rent Depreciation expense Increase in income taxes payable Increase in inventory Operating

image text in transcribedAdjustment Options:

  • Decrease in accounts payable
  • Decrease in accounts receivable
  • Decrease in prepaid rent
  • Depreciation expense
  • Increase in income taxes payable
  • Increase in inventory
Operating Activities Section-Indirect Method The following account balances for the noncash current assets and current liabilities of Suffolk Company are available: December 31 2017 2016 Accounts receivable Inventory Prepaid rent Totals $43,470 29,520 16,720 $89,710 $25,550 6,370 14,590 $46,510 $35,290 40,470 14,500 $90,260 $19,170 10,410 12,270 $41,850 Accounts payable Income taxes payable Interest payable Totals Net income for 2017 is $39,020. Depreciation expense is $21,500. Assume that all sales and all purchases are on account

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