Which one of the following below should be added to net income in calculating net cash...

Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method?

a. A decrease in accounts payable

b. Dividends paid on common stock

c. An increase in accrued liabilities

d. A gain on the sale of land

Solutions

Expert Solution

Which one of the following below should be added to net income in calculating net cash flow from operating activities using the indirect method?

Answer: C = An increase in accrued liabilities.

TIP: While calculating CFO from the indirect method, we always add expenses and losses to the net income and subtract income and gains from the net income.

ekkarill92 answered 2 years ago

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