Answer:
The $7,000 balance of prepaid expenses should be added in the net income.
Explanation:
If the indirect method of cash flow statement is followed, then the decrease in current assets would increase the cash balance as it is an inflow of cash whereas the increase in current assets would decrease the cash balance as it is an outflow of cash.
But in the current liabilities, the conditions are opposite which means a decrease in current liabilities would decrease the cash balance whereas the increase in current liabilities would increase the cash balance.
In the question, it is given that the opening balance of the prepaid expenses is $15,000 and the ending balance is $8,000 which show decrements of $7,000 which will add to the net income.
Hence, the $7,000 balance of prepaid expenses should be added in the net income.
<span>a. good personal hygiene is your Answer.</span>
I would try accepting the cat slowly just by like talking to her every now and then, or getting a stuffed animal that looks like the bunny to try talking to
The house will most likely go to her Nephew.
