When preparing the operating section of the statement of cash flows using the Indirect Method, the following adjustments to Net Income could be made:

1. A gain on sale of assets would be subtracted

2. A year over year increase in A/R would be subtracted

3. A year over year increase in Inventory would be added

4. A year over year decrease in A/P would be subtracted

5. A year over year decrease in wages payable would be added

6. A loss on sale of assets would be subtracted

Answer Choice:

A. 3, 4 and 6.

B. None of the answers are correct.

C. 2, 4 and 5.

D. 1, 2 and 6.

E. 1, 3 and 5.