Adjustments to Net Income

Consider the following independent events:

Required: Indicate whether each event will be added to or deducted from net income in order to compute cash flow from operations.

a.Gain on sale of an asset

b.Increase in accounts receivable

c.Decrease in prepaid insurance

d.Amortization expense

e.Increase in accounts payable

f.Uncollectible accounts expense

g.Decrease in wages payable

h.Increase in inventories

i.Depreciation expense