The cash flow statement report is an important tool for the board of directors to measure their success in managing a nonprofit entity. A nonprofit organization, organized under section 501(c) of the tax code, is subject to the same operational and fiscal restraints as, and in some cases more than, a for-profit business. One more stringent requirement is that many nonprofits must use the accrual method of accounting, a method that is optional for other businesses. The Generally Accepted Accounting Practices (GAAP) are more detailed for this method, making the process more complex. When preparing a statement of cash flows using the indirect method, can an increase in dividends payable add to net income for adjustments in the cash flow statements?