Question
You are preparing the operating section of the December 31, 2020 cashflow statement using the indirect method. For each component below, indicate if the change
You are preparing the operating section of the December 31, 2020 cashflow statement using the indirect method. For each component below, indicate if the change is added to or deducted from profit to arrive at cash from operations. If the amount is not a component of the operating section, state that it is not a component. Each selection (added to profit, deducted from profit, not a component can be used more than once. Is the change in accrued expenses payable added or deducted from profit to arrive at cash from operations Is the change in prepaid expenses added or deducted from profit to arrive at cash from operations? Is the change in accounts receivable added or deducted from profit to arrive at cash from operations Are the non-cumulative dividends added or deducted from profit to arrive at cash from operations Is the change in amortization added or deducted from profit to arrive at cash from operations Is the change in accounts payable added or deducted from profit to arrive at cash from operations 1. Added to profit 2. Deducted from profit 3. Not a component of operating cash flow B > > > > Is the change in amortization added or deducted from profit to arrive at cash from operations Is the change in accounts payable added or deducted from profit to arrive at cash from operations Is the change in inventory added or deducted from profit to arrive at cash from operations flow
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