Question 37 The following information is for ABC Inc: Inventory - January 1 300 000 $ Inventory - December 31 335 000 $ Accounts payable - January 1 45 000 $ Accounts payable - December 31 48 000 $

If ABC Inc. prepares its cash flow statement using the indirect method, what adjustment to net income will be made for the year when calculating its cash flow from operations?

Options for Question 36:

add $32,000 to net income

deduct $32,000 from net income

add $35,000 to net income

None of the above

deduct $35,000 from net income