Question
Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
Avatar Auto Parts Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
| Avatar Company |
| Comparative Balance Sheet |
| December 31, 2014 and 2013 |
| 2014 | 2013 | Increase/decrease | |
| Accounts Payable | $4,000 | $6,000 | $(2,000) |
| Accrued Liabilities | 2,000 | 1,000 | 1,000 |
| Long-Term Notes Payable | 84,000 | 90,000 | (6,000) |
| Total liabilities | $90,000 | $97,000 | $(7,000) |
How will the change in Accounts Payable be shown on the statement of cash flows?
| a. as an addition to operating cash flows | ||
| b. as a subtraction from Net Income | ||
| c. as a subtraction from investing cash flows | ||
| d. as an addition to Net Income |
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An Auditors Guide To Auditing Financial Statements In The UK
Authors: Steve Collings
1st Edition
1526527480, 978-1526527486
