Determine whether to ADD or DEDUCT the changes in various accounts and gains and losses on the sale of assets during the year under the INDIRECT METHOD. 1Decrease in accounts receivable, $90,000 2Increase in inventory, $120,000 3Decrease in prepaid expenses, $3,000 4Decrease in Accounts Payable, $65,000 5Increase in accrued expenses payable, $8000 6Increase in income taxes payable, $12,000 7Gain on sale of equipment, $7,000