For each item listed below, indicate the effect on net income in arriving at cash flows from operations by choosing one of the following code letters. Code Cash Flows from Operating Activities Add to Net Income A Deduct from Net Income D 1. Decrease in accounts receivable 2. Increase in inventory 3. Increase in prepaid expenses 4. Decrease in accounts payable 5. Decrease in accrued liabilities 6. Increase in income taxes payable 7. Depreciation expense 8. Loss on sale of investment 9. Gain on disposal of equipment 10. Depletion expense
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