Chapter 12, Problem 12.3ME

Determining the Effects of Account Changes on Cash Flows from Operating Activities (Indirect Method)

Indicate whether each item would be added (+) or subtracted (−) in the computation of cash flow from operating activities using the indirect method.

______ 1. Depreciation.

______ 2. Inventory decrease.

______ 3. Accounts payable decrease.

______ 4. Accounts receivable increase.

______ 5. Accrued liabilities increase.