for cash flow of operation activities: increase in inventory is supposed to be subtracted. true or false

The comparative balance sheet of Merrick Equipment Co, for December 31, 2021 and 2020, is as follows: Additional data obtained from an examination of the accounts in the ledger for 2021 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year, c. The investments were sold for $91,800 cash. d. The common stock was issued for cash. e. There was a $146,680 credit to Retained Eamings for net income. f. There was a $102,000 debit to Retained Earnings for cash dividends declared. Instructions: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. (15 Points) Merrick Equipment Co. Statement of Cash Flows For the year ended December 31, 2021 \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Particulars } & Amount (in \$) & Amount (in \$) \\ \hline Cash flows from Operating Activities & & \\ \hline Net Income before income taxes & & 146,680 \\ \hline Adjustments to reconcile net income :- & 14,790 & \\ \hline Depreciation Expense & 18,040 & \\ Increase in Accounts receivable (net) & 9,670 & \\ Increase in Inventories & 11,560 & \\ Increase in Accounts Payable & 3,740 & \\ Increase in Accrued Expenses Payable & & \\ & & \\ \hline Net cash provided by Operating Activities & & 168,400 \\ \hline \end{tabular}