The comparative balance sheets of Apollo Rocket, Inc. show a net increase in inventory of $75,000 and a net decrease in accounts payable of $40,000 during 2015. In computing net cash flow from operating activities under the indirect method, net income for 2015 should be:

Reduced by $35,000.

Increased by $115,000.

Increased by $35,000.

Reduced by $115,000.