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Green Skies Company Prepares Its Statement of Cash Flows Using

Question 132

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Green Skies Company prepares its statement of cash flows using the indirect method.Indicate whether each of the items below would be added to (+)or deducted from (-)net income to determine net cash flows from operating activities.
_____ 1.Increase in Inventory
_____ 2.Increase in Accounts Payable
_____ 3.Depreciation Expense
_____ 4.Loss on Disposal of Truck
_____ 5.Decrease in Accounts Receivable
_____ 6.Decrease in Wages Payable
_____ 7.Amortization Expense
_____ 8.Decrease in Prepaid Rent
_____ 9.Gain on Sale of Land
_____ 10.Decrease in Income Taxes Payable

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