LO2. How is the statement of cash flows prepared using the indirect method? a) When using the indirect method, the statement of cash flows operating activities section begins with b) For the operating activities, list two items that might be needed for Adjustments to reconcile Net Income to Net Cash Provided by Operating Activities: ii) i) c) In operating activities, an increase in accounts payable is (subtracted or added) d) In operating activities, an increase in accounts receivable is (subtracted or added)