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Assuming a company uses the indirect method in the operating activities section of the statement of cash flows, answer the following questions. 1. Why is

Assuming a company uses the indirect method in the operating activities section of the statement of cash flows, answer the following questions.

1. Why is an increase in accounts receivable a subtraction when adjusting from net income to operating cash flow?

2. Why is a decrease in accounts payable a subtraction when adjusting from net income to operating cash flow?

3. Why is stock-based compensation an addition when adjusting from net income to operating cash flow?

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