When using the indirect method to calculate and report net cash inflows or outflows by operating activities, which of the following is subtracted from net income? 1. An decrease in Accounts Payable of $5,000 2. A decrease in Prepaid Expenses of $7,000 3. Depreciation Expense of $1,000 4. Aloss on the sale of Long Term Investment of $200 None of the choices are correct Only #1 will be subtracted from net income Both #1 and #2 will be subtracted from net income Both #1 and 4 will be subtracted from net income #1, #2, and #4 will be subtracted from net income Only #3 will be subtracted from net income None of these will be subtracted from net income Only #4 will be subtracted from net income All of these will be subtracted from net income Only 2 will be subtracted from net income