QUESTION 8 1. In preparing a Statement of Cash Flows using the Indirect Method on Dec. 31, what adjustment is made if the Accounts Receivable balance decreased by $1,250,000 from Dec. 31 of the previous year?

A. Subtract 1,250,000 from Net Income.

B. Add 1,250,000 to Net Income

C. Subtract (1,250,000 x 1-Tax Rate) from Net Income.

D. Add (1,250,000 x 1-Tax Rate) to Net Income.