1- Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $ 87,300 Depreciation expense 14,000 Gain on sale of land 6,300 Increase in merchandise inventory 4,050 Increase in accounts payable 8,150 2- A machine with a cost of $145,000 and accumulated depreciation of $100,000 is sold for $57,500 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: Multiple Choice Zero. This is a financing activity. $45,000. Zero. This is an operating activity. $12,500. $57,500.