Which of the following adjustments to net income is needed to obtain cash flows? a. Eliminate gains on sale of equipment. b. Add to net income all noncash expenses (e.g., depreciation and amortization). c. Add to net income any increases in current liabilities. d. Deduct from net income any increases in inventories. e. All of the above.

Which of the following adjustments to net income is needed to obtain cash flows? a. Eliminate gains on sale of equipment. b. Add to net income all noncash expenses (e.g., depreciation and amortization). c. Add to net income any increases in current liabilities. d. Deduct from net income any increases in inventories. e. All of the above.

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Description: Which of the following adjustments to net income is needed to obtain cash flows? a. Eliminate gains on sale of equipment. b. Add to net income all noncash expenses (e.g., depreciation and amortization). c. Add to net income any increases in cur

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 5EA: What adjustment(s) should be made to reconcile net income to net cash flows from operating...

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