Excerpts from Aultman Corporation's Comparative Balance Sheet Appear Below

question 136

Multiple Choice

Excerpts from Aultman Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

• A) The change in Inventory is added to net income; The change in Accounts Payable is added to net income
• B) The change in Inventory is added to net income; The change in Accounts Payable is subtracted from net income
• C) The change in Inventory is subtracted from net income; The change in Accounts Payable is added to net income
• D) The change in Inventory is subtracted from net income; The change in Accounts Payable is subtracted from net income

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