Excerpts from Harris Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

Answer

a.

The change in Accounts Payable is added to net income; The change in Accrued Liabilities is subtracted from net income

b.

The change in Accounts Payable is added to net income; The change in Accrued Liabilities is added to net income

c.

The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is added to net income

d.

The change in Accounts Payable is subtracted from net income; The change in Accrued Liabilities is subtracted from net income