Excerpts from Neuwirth Corporation's Comparative Balance Sheet Appear Below

Multiple Choice

Excerpts from Neuwirth Corporation's comparative balance sheet appear below: Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

A) The change in Accounts Receivable is added to net income; The change in Inventory is added to net income
B) The change in Accounts Receivable is added to net income; The change in Inventory is subtracted from net income
C) The change in Accounts Receivable is subtracted from net income; The change in Inventory is subtracted from net income
D) The change in Accounts Receivable is subtracted from net income; The change in Inventory is added to net income