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: $$\begin{array} { l | r } \text { Net income } & \$ 85,300 \\\hline \text { Depreciation expense } & 12,000 \\\\\hline & \\\hline \text { Increase in merchandise inventory } & 2,050 \\\hline \text { Increase in accounts payable } & 6 , 1 5 0\end{array}$$

A) $85,700.
B) $69,900.
C) $93,900.
D) $108,900.
E) $81,600.