In 2018, Anderson Company purchased equipment for $370,000 and also sold some special purpose machinery with a book value of $157,800 for $185,500. In its statement of cash flows for 2018, Anderson should report the following with respect to the above transactions:

$184,500 net cash used by investing activities.

$184,500 net cash used by investing activities; $27,700 net cash provided by operating activities.

$370,000 cash used by investing activities; $185,500 cash provided by financing activities.

$370,000 net cash used by investing activities.