The following information for cash inflows and changes in ac…
The following information for cash inflows and changes in account balances was provided for the year. When converting from cash to accrual basis net income, indicate whether each of the account changes would be added (+), subtracted (-) or have no effect (NE) on net operating cash flow to determine accrual basis net income by placing a +, -, or NE in the blank provided. Net Operating Cash Flow/Cash Basis Income $175,000 Decrease in Accounts Receivable 5,000 Increase in Deferred Service Revenue 6,000 Increase in Prepaid Insurance 3,000 Decrease in Accounts Payable 25,000 Depreciation for the year 10,000 Accrual basis net income ??