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An analyst contemplates using the indirect methods to create the projected statement of cash flows. She decides to research the differences between the direct and indirect methods. Which of the following statements is most accurate? Under the: A. direct method, depreciation must be added to cash collections because it is a non-cash expense. B. indirect method, depreciation must be added to net income, because it is a non-cash expense. C. indirect method, changes in accounts receivable are already included in the net income figure. |