Exercise 16-2 Making adjustments to derive cash flow from operating activities (indirect method) LOS Select by Yes/No in the appropriate column whether an item is added or subtracted to derive cash flow from operating activities. (Yes/No is required in every answer box.) Adjust by Adding Subtracting ces 1. Changes in non-cash current assets a. Increases b. Decrease 2. Changes in current liabilities a. Increases b. Decreases 3 Depreciation of plant and equipment 4 Amortization of intangible assets 5. Interest expense a. Bond premium amortized b. Bond discount amortized 6 Sale of non-current asset: a. Gain b. Loss