What is the net adjustment to net income with respect to the determination of operating cash flows when inventory increases $100,000 and accounts payable increases $20,000?
A)An increase of $120,000.
B)A decrease of $120,000.
C)An increase of $80,000.
D)A decrease of $80,000

Question

Quizplus · Accepted Answer

An increase in inventory is deducted from net income and an increase in accounts payable is added to net income.

What Is the Net Adjustment to Net Income with Respect