Brandt Corp.sels short-term treasury bills that have a book value of $11,000 and are classified as cash equivalents on the company's balance sheet for $10,000. On its statement of cash flows, Brandt should report 01.$1,000 of investing activity outflows. 2. $10,000 of investing activity outflows. 3.$10,000 of operating activity outfiows. 04 $1,000 of operating activity outflows. Penny Company shows supplies expense of $15,000 in its income statement. During the current year, the balance of its supplies decreased by $2,000. If the company uses the indirect method of presenting the operating activities section of the statement of cash flows, the change of $2,000 should be 1. subtracted from net income. 2. ignored 3. added to net income