A company experiences the following items during the year a Depreciation expense b Increase in income taxes payable c Decrease in accounts receivable d Increase in prepaid expenses e Gain on sale of investments Required Identify whether each item would be an addition to or subtraction from net inco...

A company experiences the following items during the year: a. Depreciation expense b. Increase in income taxes

Question:

A company experiences the following items during the year:
a. Depreciation expense
b. Increase in income taxes payable
c. Decrease in Increase in prepaid expenses
e. Gain on sale of investments
Required
Identify whether each item would be an addition to or subtraction from net income when calculating operating cash flows using the indirect method.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...