1) A gain on the sale of long-term assets is added to net income to arrive at net c

rive at net cash flows from operating activities under the indirect method. 2) Under the
indirect method, an increase in inventory is added to net income and a decrease in inventory is subtracted from net income to arrive at net cash flows from
operating activities. 3) Under the indirect method, a decrease in accounts payable is added to net income to arrive at net cash flows from operating activities. 4)
Under the indirect method, an increase in accounts payable is added to net income to arrive at net cash flows from operating activities.