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

	Ending Balance			Beginning Balance
Cash and cash equivalents	$	41,000		$	31,000
Accounts receivable	$	28,000		$	32,000
Inventory	$	69,000		$	72,000

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

Multiple Choice

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

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

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

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