Krech Corporation's comparative balance sheet appears below Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $303,00e 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $303,000 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: 13,000 52,000 67,000 132,000 76,000 208,000 Accounts payable $ 9,000 53,000 69,000 131,000 73,000 204,000 Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total 1iabilities Stockholders' equity: Common stock 28,000 67,000 95,000 $303,000 26,000 73,000 99,000 S303,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 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 Which of the following is correct regarding the operating activities section of the statement of cash flows? A. The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be added to net income
B. The change in Accounts Receivable will be added to net income; The change in Inventory will be subtracted from net income
C. The change in Accounts Receivable will be added to net income; The change in Inventory will be added to net income
D. The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be subtracted from net income