Final answer:
In the operating cash flows section of the statement of cash flows, decreases in current assets are added back.
Step-by-step explanation:
In the operating cash flows section of the statement of cash flows, decreases in current assets are added.
Current assets include items like cash, accounts receivable, inventory, and prepaid expenses. When these assets decrease, it means that the company is using less cash or collecting less revenue. To reflect this decrease in cash, it's added back in the operating cash flows section.