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

A. subtract write-offs of inventory advances from the cost of goods sold.
B. add increases in accounts receivables to net sales.
C. subtract decreases in accounts payable from the cost of goods sold.

【正确答案】 C

【答案解析】Decreases in accounts payable represent a decrease in cash so these should be subtracted from the negative cost of goods sold figure (i. e. make it more negative). A write-off of inventory (e. g. from applying lower of cost or market) 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). An increase in accounts receivables represents a cash drain so this should be subtracted from the sales figure.