Mast Company reports net income of $$305,000$ for the year ended December $31.$ It also reports $$93,700$ depreciation expense and a $$10,000$ loss on the sale of equipment. Its comparative balance sheet reveals a $$40,200$ increase in accounts receivable, a $$10,200$ decrease in prepaid expenses, a $$15,200$ increase in accounts payable, and a $$12,500$ decrease in wages payable. Calculate the net increase in cash for the year.

Multiple Choice

$$228,600.$

$$194,000.$

$$381,400.$

$$310,600.$

$$406,400.$

A machine with a cost of $$146,000$ and accumulated depreciation of $$101,000$ is sold for $$58,000$ cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

Multiple Choice

$$58,000.$

$$45,000.$

Zero. This is an operating activity.

$$13,000.$

Zero. This is a financing activity.