Your friend knows you are studying accounting and has asked for assistance checking the formulas their accountant used to prepare the operating activities section of their business cash flow statement. The formulas provided are:

1. Cash paid for interest = Interest expense + increase in interest payable
2. Cash paid for taxes = Decrease in taxes payable - income tax expense
3. Cash paid for inventory = Increase in inventory - increase in accounts payable + COGS
4. Cash collected from sales = Decrease in accounts receivable - sales revenue

Which of the above formulas is correct?

Note: Please provide all the formulas Q1-4 should be