A company has a net cash inflow from operating activities of $790,000, a net cash outflow of $52,000 from investing activities and a net cash inflow of $100, 500 from financing activities. The company paid $125,000 in interest, $187,000 in income taxes, and $201,000 in cash dividends. Which of the following statements about the statement of cash flows is not correct? The statement of cash flows will show a net increase in cash and cash equivalents of $838, 500. If the direct method is used, the $125,000 of interest paid and the $187,000 of income taxes paid will be reported in the cash flows from operating activities. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section. Supplemental disclosures required for a company using the indirect method include the amount of interest and the amount of income taxes paid