Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a. a decrease in accounts payable b. an increase in accounts receivable c. common stock dividends declared and paid d. a decrease in inventory

A decrease in inventory

Explanation:

Inventory refers to the finished goods that a company has in its warehouse, and are meant of sale.  The value of inventory is recorded as a current asset. If sold on a cash basis, it converts to cash or account receivable if sold on credit.

A reduction in inventory signals that some sales transaction has happened.  A sale contributes directly to the net come income of a business.  Sales generate or increase cash to the business. Its a cash inflow in the cash flow statement. Reduction in inventory is, therefore, an indirect communication in the increase of net income.

answer; /// (b) i believe its that is paid to state and federal taxing authorities;

answer; correct answer is investing activity;