During the year the balance in the Inventory account increased by $4,000.In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows,it would be necessary to:
A)subtract the $4,000 from the sales revenue reported on the income statement.
B)add the $4,000 to the sales revenue reported on the income statement.
C)subtract the $4,000 from the cost of goods sold reported on the income statement.
D)add the $4,000 to the cost of goods sold reported on the income statement.

Question

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The Answer of During the year the balance in the Inventory account increased by $4,000.In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows,it would be necessary to:
A)subtract the $4,000 from the sales revenue reported on the income statement.
B)add the $4,000 to the sales revenue reported on the income statement.
C)subtract the $4,000 from the cost of goods sold reported on the income statement.
D)add the $4,000 to the cost of goods sold reported on the income statement.

During the Year the Balance in the Inventory Account Increased