38) Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $ Net income Depreciation expense Gain on sale of land Increase in merchandise inventory Increase in accounts payable 85,600 12,300 7800 2350 6450 E) $13,050. C) $36,800. B) $29,000. D) $94,200. A) S14,050. 39) In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: Net income for the year was Accounts payable decreased by Accounts receivable increased by Inventories increased by Cash dividends paid were Depreciation expense was $ 57,000 23,000 30,000 10,000 15,000 25,000 Net cash provided by operating activities was: A) $74,000. B) $135,000. C) $35,000. D) $19,000. E) $49,000. 40) A machine with a cost of $136,000 and accumulated depreciation of $88,000 is sold for $56,000 cash. The amount that should be reported in the operating activities section reported under the direct method is: A) $56,000 B) $48,000. C) $8000. D) Zero. This is an investing activity. E) Zero. This is a financing activity