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You are given the balance sheets for year 2098 and 2099. When you construct the firm's cashflow statement for 2099, in the part of operating
You are given the balance sheets for year 2098 and 2099. When you construct the firm's cashflow statement for 2099, in the part of operating activities, you start with net income in 2099 and you need to make adjustments for the amount "increase in accounts payable" (i.e. increase from 2098 to 2099). Do you add "increase in accounts payable" back or deduct "increase in accounts payable"? Your supervisor just notice that the amount recorded under "increase in accounts payable" is negative and ask you to reconsider the scenario before answering the question. Deduct Add The scenario presents conflicting information and you cannot answer the
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