True of false:

1. if a company uses the direct method of calculating net cash flows from operating activities, it must adjust net income for gains or losses when selling property when selling property, plant, & equipment

2. when preparing the operating activities section of the statement of cash flows using the indirect method, an increase in income taxes payable is added to net income

3. the issuance of a stock dividend is a cash outflow in the financing activities section of the statement of cash flows

4. when calculating net cash flow from financing activities using the direct method, a company mist convert interest expense to cash paid for interest

please explain