Atkins Corporation has provided the following information for the year ended December 31, 2014:

	The equipment account balance increased $209,000.
	The equipment accumulated depreciation account increased $35,900.
	Equipment costing $51,800 was sold during the year resulting in a $11,350 gain.
	Depreciation expense recorded on the equipment during the year was $66,350.

Which of the following statements is incorrect with respect to preparation of the statement of cash flows? Assume that the equipment purchase and sale resulted in cash flows.

A $63,150 cash inflow is reported from the equipment sale.

Using the indirect method, net income is decreased by the $11,350 gain on the sale of the equipment.

Using the indirect method, net income is increased by the $66,350 depreciation expense.

A $32,700 cash inflow is reported from the equipment sale.