Final answer:
The net effect on adjustments to Net Income from a $30,000 increase in Accounts Receivable and a $20,000 increase in Wages Payable is a $10,000 decrease in the net cash from operating activities using the indirect method in the Statement of Cash Flows.
Step-by-step explanation:
The question asks about the net effect of Accounts Receivable (AR) and Wages Payable (WP) on the adjustment to Net Income according to the indirect method for the statement of cash flows. When using the indirect method, increases in AR are subtracted from net income because this represents revenue that has been recognized but not yet received in cash. Conversely, increases in WP are added to net income as this represents expenses that have been recognized but not yet paid in cash. Therefore, an increase in AR of $30,000 would decrease the cash flow, while an increase in WP of $20,000 would increase the cash flow.
The net effect is the difference between these two, which is $10,000 ($20,000 - $30,000), leading to a decrease in the net cash from operating activities. The correct answer is: A. $10,000 decrease.