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Under the indirect method of preparing the statement of cash flows, depreciation and amortization should be: Deducted from ne
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Answer #1

Answer) Added to net income

Explanation:

Under the indirect method of preparing the statement of cash flows, depreciation and amortization should be added to net income because it is a non-cash expenses. Net Income was derived from Accrual Basis of Accounting, so Non Cash Expenses and Increase / (decrease) in Operating assets and liabilities should be added or subtracted to arrive at 'Cash provided by Operating Activities'.

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