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Given the items below, which of the following is a subtraction from net income to arrive...

Given the items below, which of the following is a subtraction from net income to arrive at operating cash flows using the indirect method? Loss on sale of assets Increase in Supplies Increase in Accounts Payable Depreciation expense Multiple Choice II. only. IV. only. II. and III. I. and II.

  1. Loss on sale of assets

  2. Increase in Supplies

  3. Increase in Accounts Payable

  4. Depreciation expense

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Answer #1
Increase in supplies
When statement of cash flows is prepared under the indirect method, Increase in supplies is deducted from net income to arrive at the operating cash flows

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