In the indirect method of statement of cash flows we make, Ask an Expert

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In the indirect method of Statement of Cash flows we make adjustments to net income based on changes in the balance sheet and income statement that show how net income is related to cash flow. If a company shows a decrease of $10,000 in accounts receivable from one year’s balance sheet to the next, what would be the adjustment to net income using the indirect method?

a. No change to cash flow

b. Decrease cash flow by $10,000

c. Increase cash flow by $10,000

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Financial Management, Finance

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