In 2018, Anderson Company purchased equipment for $372,000 and also sold some special purpose machinery with a book value of $158,600 for $186,500. In its statement of cash flows for 2018, Anderson should report the following with respect to the above transactions:

• a) $185,500 net cash used by investing activities.

• b) $185,500 net cash used by investing activities; $27,900 net cash provided by operating activities.

• c) $372,000 net cash used by investing activities.

• d) $372,000 cash used by investing activities; $186,500 cash provided by financing activities.