The following list contains activities that may be added or subtracted from net profit when reconciling to cash flows from operating activities. Indicate whether each activity is added, subtracted or irrelevant.Increase in furniture and fixtures  Answer 1 Question 1Decrease in accrued wages Answer 2 Question 1Loss on sale of equipment Answer 3 Question 1Proceeds from borrowings Answer 4 Question 1Gain on sale of investments Answer 5 Question 1Increase in inventory Answer 6 Question 1Decrease in prepaid rent expenses  Answer 7 Question 1Amortization expenses Answer 8 Question 1

Increase in furniture and fixtures: This is subtracted. When there's an increase in furniture and fixtures, it means the company has spent cash to acquire these assets, which reduces the cash flow from operating activities.

Decrease in accrued wages: This is added. A decrease in accrued wages means the company has paid off some of its wage liabilities, which increases the cash flow from operating activities.

Loss on sale of equipment: This is added. A loss on the sale of equipment is a non-cash expense that reduces net income but does not affect cash flow, so it is added back in when calculating cash flow from operating activities.

Proceeds from borrowings: This is irrelevant. Proceeds from borrowings are a financing activity, not an operating activity, so they do not affect the calculation of cash flow from operating activities.

Gain on sale of investments: This is subtracted. A gain on the sale of investments is a non-cash income that increases net income but does not affect cash flow, so it is subtracted when calculating cash flow from operating activities.

Increase in inventory: This is subtracted. An increase in inventory means the company has spent cash to acquire more inventory, which reduces the cash flow from operating activities.

Decrease in prepaid rent expenses: This is added. A decrease in prepaid rent expenses means the company has used up some of its prepaid rent, which increases the cash flow from operating activities.

Amortization expenses: This is added. Amortization is a non-cash expense that reduces net income but does not affect cash flow, so it is added back in when calculating cash flow from operating activities.