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Texas Corp The Change in Accounts Payable Is Reported as a Negative

question 165

True/False

Texas Corp.uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet:
 Texas Corp. Comparative Balance Sheet December 31,2018 and 201720182017 Increase/(Decrease)  Accounts Payable $8,000$9,000$(1,000 Accrued Liabilities 3,0001,5001,500 Long-term Notes Payable 56,00060,000(4,000 Total Liabilities $67,000$70,500$(3,500)\begin{array}{c}\text { Texas Corp.}\\\text { Comparative Balance Sheet}\\\text { December 31,2018 and 2017}\\\begin{array}{|l|r|r|r|}\hline&2018&2017&\text { Increase/(Decrease) }\\\hline \text { Accounts Payable } & \$ 8,000 & \$ 9,000 & \$(1,000 \\\hline \text { Accrued Liabilities } & 3,000 & 1,500 & 1,500 \\\hline \text { Long-term Notes Payable } & \underline{56,000} & \underline{60,000} & \underline{(4,000} \\\hline \text { Total Liabilities } & \$ 67,000 & \$ 70,500 & \$(3,500) \\\hline\end{array}\end{array}
The change in Accounts Payable is reported as a negative cash flow in the adjustments to net income.


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