Use the Following Information and the Indirect Method to Calculate

Multiple Choice

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $\begin{array}{|l|r|}\hline \text { Net income } & \$ 12,300 \\\hline \text { Depreciation expense } & 12,000 \\\hline \text { Payment on mortgage payable } & 15,000 \\\hline \text { Gain on sale of land } & 7,500 \\\hline \text { Increase in merchandise inventory } & 2,050 \\\hline \text { Increase in accounts payable } & 6,150 \\\hline \text { Proceeds from sale of land } & 8,000 \\\hline\end{array}$

A) $12,700
B) $13,900
C) $20,900
D) $28,400
E) $35,900