Platt Company prepares its statement of cash flows using the indirect method. Indicate whether each of the items below would be added to (+) or deducted from (-) net income to determine net cash flows from operating activities.
_____ 1. Decrease in Inventory
_____ 2. Decrease in Accounts Payable
_____ 3. Depreciation Expense
_____ 4. Loss on Disposal of Truck
_____ 5. Increase in Accounts Receivable
_____ 6. Increase in Wages Payable
_____ 7. Amortization Expense
_____ 8. Increase in Prepaid Rent
_____ 9. Gain on Sale of Land
_____ 10. Increase in Income Taxes Payable

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The Answer of Platt Company prepares its statement of cash flows using the indirect method. Indicate whether each of the items below would be added to (+) or deducted from (-) net income to determine net cash flows from operating activities.
_____ 1. Decrease in Inventory
_____ 2. Decrease in Accounts Payable
_____ 3. Depreciation Expense
_____ 4. Loss on Disposal of Truck
_____ 5. Increase in Accounts Receivable
_____ 6. Increase in Wages Payable
_____ 7. Amortization Expense
_____ 8. Increase in Prepaid Rent
_____ 9. Gain on Sale of Land
_____ 10. Increase in Income Taxes Payable

Platt Company Prepares Its Statement of Cash Flows Using the Indirect