Luddington, Inc., reported a $100,000 loss of the sale of equipment on its income statement. What is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?
1) Add $100,000 to net income
2) Subtract $100,000 from net income
3) Add $100,000 to cash flows from operating activities
4) Subtract $100,000 from cash flows from operating activities