Knowledge Check 01 Freemont Company's Accounts Receivable decreased by $4,000 and its Inventory decreased by $3,000 during the year Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method The change in Accounts Receivable is added to net income the change in Inventory is added to net income The change in Accounts Receivable is subtracted from net income the change in Inventory is added to net income The change in Accounts Receivable is added to net income the change in Inventory is subtracted from net income The change in Accounts Receivable is subtracted from net income the change in Inventory is subtracted from net income Knowledge Check 02 Freemont Company's Accounts Payable decreased by $4,000 and its Income Taxes Payable increased by $3,000 during the year Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method The change in Accounts Payable is added to net income the change in Income Taxes Payable is added to net income The change in Accounts Payable is added to net income the change in Income Taxes Payable is subtracted from net income The change in Accounts Payable is subtracted from net income the change in Income Taxes Payable is added to net income The change in Accounts Payable is subtracted from net income the change in Income Taxes Payable is subtracted from net income Knowledge Check 03 Duffy Inc , had net income of $95,000 for the year just ended Duffy collected the following additional information to prepare its statement of cash flows for the year Accounts Receivable increased by $191,000, Inventory decreased by $32,000, Accounts Payable decreased by $49,000, and Depreciation charges amounted to $46,000 Duffy uses the indirect method to prepare its statement of cash flows What is Duffy's net cash provided by (used in) operating activities $55,000 $(67,000) $227,000 $321,000

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Knowledge Check 01 Freemont Company's Accounts Receivable decreased by $4,000 and its Inventory decreased by $3,000 during the year. Which of the following is the

Knowledge Check 01

Freemont Company's Accounts Receivable decreased by $4,000 and its Inventory decreased by $3,000 during the year. Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

The change in Accounts Receivable is added to net income; the change in Inventory is added to net income.
The change in Accounts Receivable is subtracted from net income; the change in Inventory is added to net income.
The change in Accounts Receivable is added to net income; the change in Inventory is subtracted from net income.
The change in Accounts Receivable is subtracted from net income; the change in Inventory is subtracted from net income.

Knowledge Check 02

Freemont Company's Accounts Payable decreased by $4,000 and its Income Taxes Payable increased by $3,000 during the year. Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

The change in Accounts Payable is added to net income; the change in Income Taxes Payable is added to net income.
The change in Accounts Payable is added to net income; the change in Income Taxes Payable is subtracted from net income.
The change in Accounts Payable is subtracted from net income; the change in Income Taxes Payable is added to net income.
The change in Accounts Payable is subtracted from net income; the change in Income Taxes Payable is subtracted from net income.

Knowledge Check 03

Duffy Inc., had net income of $95,000 for the year just ended. Duffy collected the following additional information to prepare its statement of cash flows for the year. Accounts Receivable increased by $191,000, Inventory decreased by $32,000, Accounts Payable decreased by $49,000, and Depreciation charges amounted to $46,000. Duffy uses the indirect method to prepare its statement of cash flows. What is Duffy's net cash provided by (used in) operating activities?