Adjustments to Net Income Under the Indirect Method:
A company reports the following operating cash flows on its statement of cash flows (in millions):
Net income $98
Adjustments to reconcile net income to net cash provided by operating activities Accounts receivable $(32)
Inventory 12
Prepaid insurance (5)
Accounts payable (13)
Salaries payable 0
Taxes payable $(36)
Net cash provided by operating activities $62
Identify whether the following account balances increased or decreased during the year:
(a) accounts receivable,
(b) inventory,
(c) prepaid insurance,
(d) accounts payable,