At the Beginning of 2018,Baldwin Corporation Bought an Automobile for $36,000

Multiple Choice

At the beginning of 2018,Baldwin Corporation bought an automobile for $36,000 by issuing a note payable.The automobile has a six-year life and is depreciated using the straight-line method.To determine net cash flow from operating activities for 2018 using the indirect method,net income should be:

A) Increased by $6,000.
B) Decreased by $6,000.
C) Increased by $42,000.
D) Neither increased nor decreased.No adjustments are necessary since no cash was received or paid.