Utah Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Utah Corp. Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 Cash Accounts Receivable Merchandise Inventory Total Assets $45,000 48,000 180,000 $273,000 $27,000 45,000 132,000 $204,000 Increase/(Decrease) $18,000 3,000 48,000 $69,000 How will the change in Merchandise Inventory be shown on the statement of cash flows? O subtraction from net income under the operating activities section O positive cash flow under the financing activities section O addition to net income under the operating activities section negative cash flow under the investing activities section

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Utah Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
Utah Corp.
Comparative Balance Sheet
December 31, 2024 and 2023
2024
2023
Cash
Accounts Receivable
Merchandise Inventory
Total Assets
$45,000
48,000
180,000
$273,000
$27,000
45,000
132,000
$204,000
Increase/(Decrease)
$18,000
3,000
48,000
$69,000
How will the change in Merchandise Inventory be shown on the statement of cash flows?
subtraction from net income under the operating activities section
positive cash flow under the financing activities section
addition to net income under the operating activities section
negative cash flow under the investing activities section
Transcribed Image Text:Utah Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Utah Corp. Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 Cash Accounts Receivable Merchandise Inventory Total Assets $45,000 48,000 180,000 $273,000 $27,000 45,000 132,000 $204,000 Increase/(Decrease) $18,000 3,000 48,000 $69,000 How will the change in Merchandise Inventory be shown on the statement of cash flows? subtraction from net income under the operating activities section positive cash flow under the financing activities section addition to net income under the operating activities section negative cash flow under the investing activities section
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