Question: When using the direct method to compute cash provided by operations, a. increases in accounts receivable are subtracted from total sales to compute cash receipts

When using the direct method to compute cash provided by operations,

a. increases in accounts receivable are subtracted from total sales to compute cash receipts from costumers

b. depreciation expense is added to net income

c. income taxes paid may be ignored

d. decreases in inventory are added to total operating expenses to compute cash payments for operating expenses

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