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:
$\begin{array}{|l|r|r|r|} \hline & {2017} &{2016} &{\text { Increase/decrease }} \\\hline \text { Accounts payable } & \$ 4000 & \$ 6000 & \$(2000) \\\hline \text { Accrued liabilities } & 2000 & 1000 & 1000 \\\hline \text { Long-term bills payable } & 84000 & 90000 & (6000) \\\hline \text { Total liabilities } & \$ 90000 & \$ 97000 & \$(7000)\\\hline\end{array}$ The change in accounts payable will be shown as a positive cash flow in the adjustments to Profit.