Determining the Effects of Account Changes on Cash Flow from Operating Activities (Indirect Method) Indicate whether each item would be added (+) or subtracted (--) in the computation of cash flow from operating activities using the indirect method. M12-2 LO12-2 1. Accrued expenses (increase). 2. Inventories (increase). 3. Accounts receivable (decrease). 4. Accounts payable (decrease). 5. Depreciation, depletion, and amortization