AC 302 WEEK 9 Exercise 23 Question 1 Your answer is correct Red Hot Chili Peppers Co. had the following activity in its most recent year of operations. Classify the items as (1) operatingâ€â€add to net income; (2) operatingâ€â€deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method.