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...

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), be deducted from net income (D), or not be reported in this section of the statement under the indirect method (NR).

_______ 1. Decrease in accounts payable

_______ 2. Increase in accounts receivable

_______ 3. Decrease in prepaid insurance

_______ 4. Purchase of new factory equipment

_______ 5. Depreciation expense

_______ 6. Gain on retirement of bonds