Assume you are in charge of preparing the operating activities section of the statement of cash flows using the indirect method. In order to reconcile the company's net income back to the cash basis, would you (1) add or (2) subtract each of the following? bo Activity bo 1. An increase in accounts receivable (bo 2. Depreciation expense (bd ba 3. A decrease in accounts payable 4. A gain on the sale of equipment 5. A decrease in prepaid insurance 6. An increase in wages payable Add or Subtract? Subtract increases in current asset accounts Add gain made on a sale since it represents noncash revenue Subtract increases in current liability accounts Subtract decreases in current asset accounts Add gain made on a sale since it represents noncash revenue Add back depreciation expense since it is a non-cash expense 4 TG-11 g the operating activities section of the statement of cash flows using the indirect method. In order to reconcile ould you (1) add or (2) subtract each of the following? Add or Subtract? vable Subtract increases in current asset accounts. le ent ce Add gain made on a sale since it represents noncash revenue. Add back depreciation expense since it is a non-cash expense. Add decreases in current asset accounts. Add decreases in current liability accounts. Add gain made on a sale since it represents noncash revenue. Add increases in current asset accounts. Add increases in current liability accounts. Subtract decreases in current asset accounts. Subtract decreases in current liability accounts. Subtract depreciation expense since it is a non-cash expense. Subtract gain made on a sale since it represents noncash revenue. Calcula Chec Subtract increases in current asset accounts