Question
In converting a statement of cash flows from the indirect to the direct method, which of the following adjustments should be made for a decrease
In converting a statement of cash flows from the indirect to the direct method, which of the following adjustments should be made for a decrease in unearned revenue when calculating cash collected from customers, and for an inventory writedown (when market value is less than cost) when calculating cash payments to suppliers? Cash collection from customers Cash payment to suppliers
Add decrease in unearned revenue Subtract an inventory writedown | ||
Subtract decrease in unearned revenue Subtract an inventory writedown | ||
Subtract decrease in unearned revenue Add an inventory writedown |
I appreciate any help!
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