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