The indirect method for reporting net cash provided or used by operating activities starts with net income and then adjusts it for three items:

$(1)$ changes in noncash current assets and current liabilities related to operating activities,

$(2)$ revenues and expenses not providing or using cash, and

$(3)$ gains and losses from investing and financing activities.

Under the indirect method of preparing the statement of cash flows, decreases in noncash current operating assets should be:

multiple choice

Deducted from net income

Added to net income

Neither added to or deducted from net income