Krech Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities $ 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $ 303,000 $ 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $ 303,000 $ 13,000 52,000 67,000 132,000 $ 9,000 53,000 69,000 131,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 13,000 52,000 67,000 132,000 76,000 208,000 $ 9,000 53,000 69,000 131,000 73,000 204,000 28,000 67,000 95,000 $ 303,000 26,000 73,000 99,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. O The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be subtracted from net income h The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be added to net income O The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be added to net income O The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be subtracted from net income