Homework answers / question archive / Part of a company's statement of cash flows is shown below:   €'000 Operating profit 8,000 Depreciation expense (2,000) Increase in inventory (300) Increase in trade payables 400 The following criticisms have been made: 1) Depreciation expense should have been added, not deducted 2) Increase in inventory should have been added, not deducted 3) Increase in trade payables should have been deducted, not added Which of the criticisms are valid? Group of answer choices 2 only 2) and 3) only 1) only 1) and 3) only

Part of a company's statement of cash flows is shown below:   €'000 Operating profit 8,000 Depreciation expense (2,000) Increase in inventory (300) Increase in trade payables 400 The following criticisms have been made: 1) Depreciation expense should have been added, not deducted 2) Increase in inventory should have been added, not deducted 3) Increase in trade payables should have been deducted, not added Which of the criticisms are valid? Group of answer choices 2 only 2) and 3) only 1) only 1) and 3) only

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Part of a company's statement of cash flows is shown below:

The following criticisms have been made:

1) Depreciation expense should have been added, not deducted

2) Increase in inventory should have been added, not deducted

3) Increase in trade payables should have been deducted, not added

Which of the criticisms are valid?

Group of answer choices

2 only

2) and 3) only

1) only

1) and 3) only