State whether a firm would add or subtract the following items from income to compute cash flows from operations under the indirect method.
Items Added or Subtracted
Increase in prepaid expense………………….._______________
Decrease in income taxes payable……………. _______________
Decrease in accounts receivable………………. _______________
Increase in inventory………………………….. _______________
Decrease in the current portion of
long-term debt………………………………… _______________
Increase in accounts payable………………….. _______________