Crabbe Company reported $80,000 of selling and administrative expenses on its income statement for the past year. The company had depreciation expense and an increase in prepaid expenses associated with the selling and administrative expenses for the year. Assuming use of the direct method, how would these items be handled in converting the accrual-based selling and administrative expenses to a cash basis? Deducted from depreciation; deducted from expenses Added to depreciation; added to expenses Deducted from depreciation; added to expenses Added to depreciation; deducted from expenses