EXERCISE 13-10. Adjustments to Net Income (Indirect Method) [LO 4]

Each of the following events/amounts is independent of all others.

1. Decrease in inventory.

2. Loss on sale of an asset.

3. Amortization of a patent.

4. Increase in wages payable.

5. Increase in accounts receivable.

6. Increase in accounts payable.

7. Depreciation expense.

8. Decrease in prepaid rent.

9. Bad debt expense.

Required

Indicate whether each of the above items will be added to or deducted from net income to arrive at net cash provided by operating activities.