Indirect and direct method cash flows, Summaries of Accounting

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Sales Revenue Increase in accounts receivable Deduct Decreases in accounts receivable Add COGS Increase in inventory Add Increase in accounts payable Deduct Decrease in inventory Deduct | Decrease in accounts payable Add Operating expenses Increase in prepaid expenses Add Increase in accrued expenses payable | Deduct Decrease in prepaid expenses Deduct | Decrease in accrued expenses payable | Add Depreciation expense and loss Not shown - non cash charge Interest If accrual basis not used for interest, no adjustments required Income Tax Expense Increase in income tax payable Deduct Decrease in income tax payable Add