craig corporations reported net income for 2012 is less than its net cash flow from operating activities. One reason for this could be:

a. An increase in inventory levels during 2012

b. The Sale of investments at a gain in 2012

c. An error in the preparation of the statement of cash flow, net income should be greater than or equal to net cash flow from operating activities.

d. The sale of machinery at a loss in 2012

the comparative balance sheets of Craigs Corp. show a net increase in inventory of $79,000 and a net decrease in accounts payable of $42,000 during 2012. In computing net cash flow from operating activities under the indirect method net income for 2012 should be:

a. Increased by $37,000

b. Increased by $121,000

c. Reduced by $37,000

d. Reduced by $121,000