Exhibit 12-3 Stalwart Inc. accounting records show the following changes during the company's most recent fiscal year. Gain on sale of 2. Loss on sale of long-term investments 3. Decrease in prepaid expenses 4. Increase in accounts receivable 5. Decrease in merchandise inventory 6. Decrease in wages payable 7. Increase in accounts payable 8. Payment of cash dividends 9. Purchase of machinery 10. Payments of principal on bonds payable 11. Proceeds from sale of long-term investments 12. Refer to Exhibit 12-3. Which of these would be added to net income as part of the operating activities section, when using the indirect method of preparing the statement of cash flows? a. 1, 4, & 6 b. 3, 5, & 7 c. 2, 3, 5, 7, 8, & 9 d. 2, 3, 5, & 7 e. None of the answer choices is correct. 13. Refer to Exhibit 12-3. Which of these would be deducted from net income as part of the operating activities section, when using the indirect method of preparing the statement of cash flows? a. 2, 3, 5, 7, 8, & 10 b. 1, 4, & 6 c. 2, 3, 5, & 7 d. 3, 4, 5, 6, & 7 e. None of the answer choices is correct. 14. Refer to Exhibit 12-3. Which of these would be added as part of the cash flows from investing activities when preparing the statement of cash flows? a. 11, b. 1, 9 & 11 c. 9 & 11 d. 1, 2, 9 & 11 e. None of the answer choices is correct