When using the indirect method to project cash flow, uses (decreases) of cash include which of the following?
A) payments to suppliers
B) purchases of materials on credit
C) building up finished goods inventory
D) payments to suppliers and building up finished goods inventory
E) All of the answers are correct.

Question

Quizplus · Accepted Answer

Payments to suppliers and building up finished goods inventory both represent uses (decreases) of cash in the indirect method of cash flow projection.

When Using the Indirect Method to Project Cash Flow, Uses