Question: Walker, Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance? sheet: ? Walker,
Walker, Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance? sheet:
? Walker, Inc.
Comparative Balance Sheet
December? 31, 2017 and 2016
| 2017 | 2016 | ?Increase/(Decrease) | |
| Cash | ?$42,000 | ?$25,000 | ?$17,000 |
| Accounts Receivable | ?32,000 | ?55,000 | ?(23,000) |
| Merchandise Inventory | ?180,000 | ?123,000 | ?57,000 |
| Total Assets | ?$254,000 | ?$203,000 | ?$51,000 |
The change in Accounts Receivable is shown as a negative cash flow in the adjustments to net income.
True
False
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