Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Harlan Mining Co. for 2013 and 2012 are provided below. BALANCE SHEETS 12/31/13 12/31/12 Cash $306,000 $ 144,000 Accounts receivable 270,000 162,000 Merchandise inventory 288,000 360,000 Property, plant and equipment $456,000 $720,000 Less accumulated depreciation (240,000) 216,000 (228,000) 492,000 $1,080,000 $1,158,000 Accounts payable $ 132,000 $ 72,000 Income taxes payable 264,000 294,000 Bonds payable 270,000 450,000 Common stock 162,000 162,000 Retained earnings 252,000 180,000 $1,080,000 $1,158,000 INCOME STATEMENT For the Year Ended December 31, 2013 Sales $6,300,000 Cost of sales 5,364,000 Gross profit 936,000 Selling expenses $450,000 Administrative expenses 144,000 594,000 Income from operations 342,000 Interest expense 54,000 Income before taxes 192,000 Income taxes 72,000 Net income $ 216,000 The following additional data were provided: 1. Dividends for the year 2013 were $144,000. 2. During the year, equipment was sold for $180,000. This equipment cost $264,000 originally and had a book value of $216,000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. Questions 4 through 8 relate to a statement of cash flows (direct method) for the year ended December 31, 2013, for Harlan Mining Company. 4. The net cash provided by operating activities is a. $306,000. b. $216,000. c. $180,000. d. $150,000