I apologize for the photo but I was having trouble capturing the screen. the answer options are. 1. The change in the accounts receivable will be subtracted from net income; The change in inventory will be added to net income. 2.The change in accounts receivable will be added to net income; the change in inventory will be subtracted from net income. 3. The change in accounts receivable will be added to net income; the change in inventory will be added to net income. 4. The change in accounts receivable will be subtracted from net income; the change in inventory will be subtracted from net income

36 TB MC Qu. 13-95 Krech Corporation's comparative ... Kroch Corporation's comparative balance sheet appears below. Comparative Balance Sheet Mints Ending Beginning Balance Balance Assets: current assets: Cash and cash equivalents $ 31, 060 $ 28,980 Accounts receivable 18, OPG 20, 080 Inventory 58, 680 Prepaid expenses 12, 020 Total current assets 119, 20 114,960 Property, plant, and equipment 374, 800 354 060 Less accumulated depreciation 165.908 Net property, plant, and equipment 184, 290 189, 060 Total assets $303, 800 $ 303, 808 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 13,902 9, 298 Accrued liabilities 53, Pee Income taxes payable 67, 902 69, 206 Total current liabilities 132, 062 131, 230 Bonds payable 76, 062 73, BUD Total liabilities 208,062 204, 020 Stockholders' equity: common stock 28, 904 26, 686 Retained earnings 67, one 73, 919 Total stockholders' equity 95, 060 99, 080 Total liabilities and stockholders' equity $ 303, 080 $ 303, 082 The company's net income (loss) for the year was ($3.000] and its cash dividends were $3,000. It did nousell or retire any proper vi plant, andiequipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows