Presented Below Is the Operating Activities Section of the Statement $\text { Operating activities: }$

question 137

Multiple Choice

Presented below is the Operating Activities section of the statement of cash flows for Golden Consulting for 2017: $\text { Operating activities: }$
$\begin{array}{lr}\text { Net income } & \$ 92,000 \\\text { Add: Depreciation } & 20,000 \\\text { Decrease in accounts receivable } & 8,000 \\\hline &\$120,000\\\text { Deduct: Decrease in accounts payable }&(6,000) \\\text { Net cash inflow from operating activities }&\$114,000\end{array}$ Which method of preparing the Operating Activities section has Golden Consulting used?

• A)The direct method
• B)The indirect method
• C)Either method
• D)Cannot be determined without further information

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