Martin Corporation uses the indirect method to prepare its statement of cash flows. If Martin purchases additional equipment, which results in additional depreciation charges, what net effect will the purchase of this additional equipment have on the net cash provided (used) in the following sections of Martin”s statement of cash flows?
|
|
Operating |
Financing |
|
|
Activities |
Activities |
|
A) |
increase |
decrease |
|
B) |
increase |
no effect |
|
C) |
decrease |
no effect |
|
D) |
no effect |
decrease |
|
E) |
no effect |
no effect |