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Excerpts from Neuwirth Corporation's comparative balance sheet appear below:
| | Ending Balance | Beginning Balance |
| Cash and cash equivalents | $ | 56,000 | | $ | 46,000 | |
| Accounts receivable | $ | 43,000 | | $ | 47,000 | |
| Inventory | $ | 84,000 | | $ | 87,000 | |
| |
Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?
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The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income
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The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income
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The change in Accounts Receivable is added to net income; The change in Inventory is added to net income
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The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income
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