Which of the Following Would Require an Adjustment in the Computation

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?

I. Sale of machinery for $50,000 with a net book value of $35,000
II. Purchase of supplies for cash
III. Remittance by customer in payment of goods purchased this accounting period
IV. Acquisition of land with simultaneous issuance of long-term note

A) I
B) I and II
C) I and III
D) IV

Correct Answer:

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