View Policies Current Attempt in Progress Assume the indirect method is used to compute cash flows from operations. For each item listed below, indicate the effect on net income in arriving at cash flows from operations by selecting one of the following codes. Cash Flows From Operating Activities: Code Add to Net Income Add Deduct from Net Income Deduct 1. Increase in accounts receivable 2. Increase in inventory 3. Decrease in prepaid expenses 4. Decrease in accounts payable 5. Increase in accrued liabilities Code 6. Increase in income taxes payable 7. Depreciation expense 8. Loss on sale of investment > 9. Gain on disposal of equipment 10. Amortization expense Save for Later > > > Attempts: 0 of 1 used Submit Answer