Virginia Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Virginia Company Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities $4,000 2,000 84,000 $90,000 $6,000 1,000 90,000 $97,000 Increase/(Decrease) $(2,000) 1,000 (6,000) $(7,000) How will the change in Accounts Payable be shown on the statement of cash flows? as a deduction from investing cash flows as an addition to operating cash flows as a deduction from Net Income in the operating activities section as an addition to Net Income in the operating activities section
Virginia Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Virginia Company Comparative Balance Sheet December 31, 2024 and 2023 2024 2023 Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities $4,000 2,000 84,000 $90,000 $6,000 1,000 90,000 $97,000 Increase/(Decrease) $(2,000) 1,000 (6,000) $(7,000) How will the change in Accounts Payable be shown on the statement of cash flows? as a deduction from investing cash flows as an addition to operating cash flows as a deduction from Net Income in the operating activities section as an addition to Net Income in the operating activities section
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Virginia Company uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet:
Virginia Company
Comparative Balance Sheet
December 31, 2024 and 2023
2024
2023
Accounts Payable
Accrued Liabilities
Long-term Notes Payable
Total Liabilities
$4,000
2,000
84,000
$90,000
$6,000
1,000
90,000
$97,000
Increase/(Decrease)
$(2,000)
1,000
(6,000)
$(7,000)
How will the change in Accounts Payable be shown on the statement of cash flows?
as a deduction from investing cash flows
as an addition to operating cash flows
as a deduction from Net Income in the operating activities section
as an addition to Net Income in the operating activities section
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