Atkins Corporation has provided the following information for the year ended December 31, 2019: The equipment account balance increased by $210,000 from the beginning of the year to the end of the...

Atkins Corporation has provided the following information for the year ended December 31, 2019:

• The equipment account balance increased by $210,000 from the beginning of the year to the end of the year.


• The equipment accumulated depreciation account balance increased by $36,000 from the beginning of the year to the end of the year.


• Equipment costing $52,000 was sold during the year resulting in a $11,500 gain.


• Depreciation expense recorded on the equipment during the year was $66,500.

Which of the following statements isincorrect with respect to preparation of the statement of cash flows? Assume that the equipment purchase and sale resulted in cash flows.

Multiple Choice

• 
  
  
  

  Using the indirect method, net income is increased by the $66,500 depreciation expense.

  
  
  
  


• 
  
  
  

  A $33,000 cash inflow is reported from the equipment sale.

  
  
  
  


• 
  
  
  

  A $63,500 cash inflow is reported from the equipment sale.

  
  
  
  


• 
  
  
  

  Using the indirect method, net income is decreased by the $11,500 gain on the sale of the equipment.