Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below:

Required:

Prepare an answer sheet using the following column headings:

For each item, place an X in the Add or Deduct column to indicate whether the dollar amount shou1d be added to or deducted from net income under the indirect method when computing the net each provided by operating activities for the year.

Transcribed Image Text:

Item Amount Accounts receivable $90,000 decrease $4,000 increase Accrued interest receivable $120,000 increase Inventory Prepaid expenses $3,000 decrease Accounts payable $65,000 decrease $8,000 increase Accrued liabilities Deferred income taxes payable $12,000 increase Sale of equipment $7,000 gain Sale of long-term investments $10,000 lo ss