Presented below is the operating activities section of the statement of cash flows for Golden Consulting for 2016: Operating activities: Net income $ 92,000 Add: Depreciation 20,000 Decrease in accounts receivable 8,000 $120,000 Deduct: Decrease in accounts payable (6,000) Net cash inflow from operating activities $114,000 Which method of preparing the operating activities section has Golden
Consulting used?
a. The direct method.
b. The indirect method.
c. Either method.
d. Cannot be determined without further information.
b
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