Question
MC Qu. 57 Excerpts from Neuwirth Corporation... Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Ending Balance Beginning Balance Cash and cash equivalents $49,000
MC Qu. 57 Excerpts from Neuwirth Corporation...
| Excerpts from Neuwirth Corporation's comparative balance sheet appear below: |
| Ending Balance | Beginning Balance | |
| Cash and cash equivalents | $49,000 | $39,000 |
| Accounts receivable | $36,000 | $40,000 |
| Inventory | $77,000 | $80,000 |
| 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 subtracted from 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 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 added to net income; The change in Inventory is added to net income
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