Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

under the indirect method, an increase in the inventory account will be deducted from net income to calculate operating cash flow because: a. cash payments

under the indirect method, an increase in the inventory account will be deducted from net income to calculate operating cash flow because:

a. cash payments to suppliers were less than the purchases made during the period

b.inventory does involve cash payments

c. cash payments to suppliers were larger than the purchases made during the period

d. customers purchased more goods than expected

e. increased in inventories are never deducted they are added to net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

12th edition

9780134487151, 013448715X, 978-0134674681

More Books

Students also viewed these Accounting questions

Question

A zero-coupon bond pays no interest. Explain.

Answered: 1 week ago

Question

3. How can we use information and communication to generate trust?

Answered: 1 week ago