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Brighton,Inc

Question 30

Multiple Choice

Brighton,Inc.uses the indirect method to determine its net cash flows from operating activities.During the course of the year,the company's Accounts Receivable increased by $10,000 and its Accounts Payable decreased by $5,000.If these are the only two adjustments required to convert net income to net cash provided by operating activities,the combined effect will be a(n) :


A) subtraction of $5,000.
B) addition of $5,000.
C) addition of $15,000.
D) subtraction of $15,000.

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