Virginia company uses the indirect method to prepare the statement of cash flows. refer to the following
section of the comparative balance sheet:
virginia company
comparative balance sheet
december 31, 2018 and 2017
2018 2017 increase/(decrease)
accounts payable $4,000 $6,000 $(2,000)
accrued liabilities 2,000 1,000 1,000
long-term notes payable 84,000 90,000 (6,000)
total liabilities $90,000 $97,000 $(7,000)
how will the change in accounts payable be shown on the statement of cash flows?
a) as a deduction from investing cash flows
b) as an addition to operating cash flows
c) as an addition to net income
d) as a deduction from net income