Assume that a company uses the indirect method to prepare the Operating Activities section of the statement of cash flows. For each of the following items, indicate whether it would be added to net income (A), deducted from net income (D), or not reported in this section of the statement under the indirect method (NR).
______ 1. Depreciation expense
______ 2. Gain on sale of used delivery truck
______ 3. Increase in accounts receivable
______ 4. Increase in accounts payable
______ 5. Purchase of new delivery truck
______ 6. Loss on retirement of bonds
______ 7. Increase in prepaid rent
______ 8. Decrease in inventory
______ 9. Issuance of note payable due in three years
______ 10. Amortization of patents