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Determining the amount of cash flows

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Problem - A retail business, using the accrual method of accounting, owed merchandise creditors (accounts payable) $240,000 at the beginning of the year and $265,000 at the end of the year. How would the $25,000 increase be used to adjust net income in determining the amount of cash flows from operating activities by the indirect method? Explain.

Reference no: EM132879284

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