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Adjust the following to prepare the statement of cash flows using the indirect method.
(a)Increase in accounts receivable, (b) increase in accounts payable, (c) depreciation of fixed
assets, (d) increase in prepaid expenses, (e) gains on disposal of assets.
Add to net income:
Subtract from net income:

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  • 1. Adjust the following to prepare the statement of cash flows using the indirect method. (a)Increase in accounts receivable, (b) increase in accounts payable, (c) depreciation of fixed assets, (d) increase in prepaid expenses, (e) gains on disposal of assets. Add to net income: Subtract from net income: