Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) SXXX Net Income (loss) Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of assets (XXX) Changes in current operating assets and liabilities: Increases in "noncash current operating assets (XXX) Decreases in **noncash current operating assets XXX Increases in current operating liabilities Decreases in "current operating liabilities XXX (XXX) *SUBTRACT Increases in accounts receivable Increases in inventory Increases in prenaid expenses **ADD Decreases in accounts receivable Decreases in inventory Decreases in nrenaid evnences