Which would be subtracted from net income in the operating section of an indirect cash flow statement?

Name: Which would be subtracted from net income in the operating section of an indirect cash flow statement?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in inventory is subtracted from net income in the operating section of an indirect cash flow statement because it represents cash that has been used to purchase additional inventory, which does not affect cash flow from operations until the inventory is sold.

Which Would Be Subtracted from Net Income in the Operating