Asked Dec 20, 2019

A retail business, using the accrual method of accounting, owed merchandise creditors (accounts payable) $320,000 at the beginning of the year and
$350,000 at the end of the year. How would the $30,000 increase be used to adjust net income in determining the amount of cash flows from operating
activities by the indirect method?


Expert Answer

Step 1

Statement of cash flows: It is one of the financial statements that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the oper...

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