Atkins Corporation has provided the following information for the year ended December 31, 2016: The equipment account balance increased $206,000. The equipment accumulated depreciation account increased $35, 600. Equipment costing $51, 200 was sold during the year resulting in a $10, 900 gain. Depreciation expense recorded on the equipment during the year was $65, 900. 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. Using the indirect method, net income is increased by the $65, 900 depreciation expense. Using the indirect method, net income is decreased by the $10, 900 gain on the sale of the equipment. A $31, 800 cash inflow is reported from the equipment sale. A $62, 100 cash inflow is reported from the equipment sale