Using the indirect method (statement of cash flows),a decrease in current liabilities would:

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When using the indirect method for the statement of cash flows, a decrease in current liabilities indicates that cash was used to reduce the liabilities. This is considered an outflow of cash in operating activities, so it is subtracted from net income to reconcile net income to net cash provided by operating activities.

Using the Indirect Method (Statement of Cash Flows),a Decrease in Current