Entity L reported net income of $25,000 for the current year and uses the indirect method to report operating activities cash flow. Merchandise Inventory increased by $5,000 during the year. Choose the appropriate category on the statement of cash flows to report the increase in Merchandise Inventory.

		Cash Flows From Operating ActivitiesAdd to Net Income
		Cash Flows From Operating ActivitiesDeduct from Net Income
		Cash Flows From Investing Activities
		Cash Flows From Financing Activities
		Non-cash