In determining net cash flow from operating activities, a decrease in accounts payable during a period . Group of answer choices requires a subtraction adjustment to net income under the indirect method does not require an adjustment under the indirect method requires an addition adjustment to net income under the indirect method does not require an adjustment under the direct method

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of