Cindy's Cookie Shop reported equipment at $240,000 and $48,000 accumulated depreciation on its December 31, 2002, balance sheet. During 2003 they purchased equipment costing $40,000 and sold equipment costing $10,000 (book value $7,200) for $2,000. On December 31, 2003, net equipment was $174,800. Using the indirect method, Cindy would report depreciation expense on its statement of cash flows for 2003 of a. $95,200. b. $54,400. c. $47,200. d. $49,000.