In 2018, Anderson Company purchased equipment for $364,000 and also sold some special purpose machinery with a book value of $155,400 for $182,500. In its statement of cash flows for 2018, Anderson should report the following with respect to the above transactions:

Multiple Choice

• $364,000 net cash used by investing activities.

• $181,500 net cash used by investing activities; $27,100 net cash provided by operating activities.

• $364,000 cash used by investing activities; $182,500 cash provided by financing activities.

• $181,500 net cash used by investing activities.