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

A. add decreases in accounts receivables to net sales.
B. subtract customer cash advances from net sales.
C. subtract increases in accounts payable from the cost of goods sold.

【正确答案】 A

【答案解析】A decrease in accounts receivables represents an increase in cash so this should be added to the sales figure. Cash advances from customers represent a source of cash so these should be added to sales. Increases in accounts payable represent an increase in cash so these should be added to cost of goods sold (which is a negative number).