Which of these would be deducted from the net income as part of the operating activities section, when using the indirect method of preparing the statement of cash flows? Stalling Inc. ccounting records show the following changes during the companys most recent fiscal year: A. gain on sale B. loss on sale of long term investment C. decrease in prepaid expenses D. increase in accounts receivable E. decrease in merchandise inventory F. decrease in wages payable G. increase in accounts payable H. payment of cash dividends I. purchase of machinery J. payment of principle on bonds payable K. proceeds from sale of long term investments.