单选题 To convert an indirect statement of cash flows to a direct basis, the analyst would:

A. subtract any depreciation that was included in the cost of goods sold.
B. subtract decreases in accounts receivables from net sales.
C. add decreases in inventory to the cost of goods sold.

【正确答案】 C

【答案解析】Decreases in inventory represent a source of cash so these would be added to the negative cost of goods sold figure (i. e. make it less negative). Any depreciation and/or amortization included in the cost of goods sold does not represent an actual use of cash, so this amount should be added to the negative cost of goods sold figure ( i. e. make it less negative). A decrease in accounts receivables represents an increase in cash so this should be added to the sales figure.