Exhibit $12-3$

Stalwart Inc. accounting records show the following changes during the company$$s most recent fiscal year.

$1.$ Gain on sale of

$2.$ Loss on sale of long$-$term investments

$3.$ Decrease in prepaid expenses

$4.$ Increase in accounts receivable

$5.$ Decrease in merchandise inventory

$6.$ Decrease in wages payable

$7.$ Increase in accounts payable

$8.$ Payment of cash dividends

$9.$ Purchase of machinery

$10.$ Payments of principal on bonds payable

$11.$ Proceeds from sale of long$-$term investments

Refer to Exhibit $12-3.$ Which of these would be added as part of the cash flows from investing activities when preparing the statement of cash flows? $9$ & $11$

$1,2,9$ & $11$

None of the answer choices is correct.

$1,9$ & $11$

$11,$