Reliance Corporation has provided the following information for the year ended December 31, 2016: The equipment account balance increased $207,000. The equipment accumulated depreciation account balance increased $35,700. Equipment costing $51,400 was sold during the year resulting in a $11,050 gain. Depreciation expense recorded on the equipment during the year was $65,700. Which of the following statements is correct with respect to determining cash flow from operating activities?