Net operating profit after taxes (NOPAT) represents a firm's earnings after deducting both interest and taxes

Which of the following adjustments to net income is NOT correct if you are trying to calculate cash flow from operating activities?

A) Add increases in accounts payable B) Add back depreciation C) Add increases in accounts receivable D) Deduct increases in inventory

A sole proprietorship is a legal entity separate from its owner

Indicate whether the statement is true or false