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In: Accounting1)For each item listed below, indicate the effect on net income inarriving at cash...1)For each item listed below, indicate the effect on net income inarriving at cash flows from operations by choosing one of thefollowing code letters. Code Cash Flows fromOperating Activities Addto NetIncome A Deductfrom NetIncome D 1. A decreasein accounts receivable 2. Increase ininventory 3. Increase inprepaid expenses 4. A decreasein accounts payable 5. Decrease inaccrued liabilities 6. Increase inincome taxes payable 7. Depreciationexpense 8. Loss on saleof investment 9. Gain ondisposal of equipment 10. Depletion expense2)Please complete the following:NetIncome......................................................................................... $177,000Adjustments to reconcile net income to net cash provided byoperating activities: Depreciation expense,$15,000........................................................ _______ Increase in accountsreceivable,$45,000........................................... _______ Increase in inventory,$22,000......................................................... _______ Decrease in accountspayable,$11,800............................................. _______ Increase in incometaxes payable,$1,500.......................................... _______ Gain on sale of land,$5,000............................................................ _______ Net cash provided(used) by operatingactivities.................................. _______