Excerpts from Aultman Corporation's comparative balance sheet appear below:

	Ending Balance			Beginning Balance
Cash and cash equivalents	$	62,000		$	29,000
Inventory	$	371,000		$	345,000
Accounts payable	$	71,000		$	73,000

Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

• The change in Inventory is subtracted from net income; The change in Accounts Payable is subtracted from net income

• The change in Inventory is subtracted from net income; The change in Accounts Payable is added to net income

• The change in Inventory is added to net income; The change in Accounts Payable is added to net income

• The change in Inventory is added to net income; The change in Accounts Payable is subtracted from net income