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
Answer: C
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