Avatar Company Uses the Indirect Method to Prepare the Cash

True/False

Avatar Company uses the indirect method to prepare the cash flow statement.Please refer to the following section of the comparative balance sheet:
$\begin{array}{|l|r|r|r|}\hline & {2017} &{2016} &{\text { Increase/decrease }} \\\hline \text { Cash } & \$ 33000 & \$ 18000 & \$ 15000 \\\hline \text { Accounts receivable } & 22000 & 35000 & (13000) \\\hline \text { Inventory } & 170000 & 115000 & 55000 \\\hline \text { Total assets } & \$ 225000 & \$ 168000 & \$ 57000 \\\hline\end{array}$ The change in inventory will be shown as a positive cash flow in the adjustments to Profit.