The following items were reported on the balance sheets and income statements of Marshall Company: Accounts payable, December 31, 2005 $42,000 Accounts payable, December 31, 2006 48,000 Operating expenses 286,000 How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

A) as an addition to operating expenses.
B) as a deduction from operating expenses.
C) as an addition to net income.
D) as a deduction from net income.


C

Business

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What will be an ideal response?

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