[Suisse82]

Which one of the following items will not appear in the operating section of Patnode's 2005 indirect method cash flow statement?

1. Deduct: increase in accounts receivable $3,000
2. Add: decrease in accounts payable $1,000
3. Add: increase in taxes payable $2,400
4. Add: decrease inventories $6000



Am not able to paste the balance sheet as a jpeg,
AR in 2004-22000$ and in 2005 -25000$
AP in 2004 -13000$ and in 2005 -12000$
Tax Payable in 2004 7000$ and in 2005 9400$
Inventories in 2004 18000$ and in 2005 12000$

I assume the answer is either 2 or 4, please suggest the right answer.

[Dog1937]

I also had a question regarding this one. I believe it is the second option however I am not sure. Any input..

[rehmanvohra]

1. Deduct: increase in accounts receivable $3,000 - correct, it is an outflow
2. Add: decrease in accounts payable $1,000 - incorrect, it is an outflow
3. Add: increase in taxes payable $2,400 - correct, it is an inflow
4. Add: decrease inventories $6000 - incorrect, it is outflow