Cash flows from operating activities—indirect method OBJ. 2 Indicate whether each of the following would be added to or deducted from net income in determining net cash flow from operating activities by the indirect method:

a. Decrease in merchandise inventory

b. Increase in accounts receivable

c. Increase in accounts payable

d. Loss on retirement of long-term debt

e. Depreciation of fixed assets

f. Decrease in notes receivable due in 60 days from customers