Reliance Corporation has provided the following information for the year ended December 31, 2016:

• The equipment account balance increased $206,000.
• The equipment accumulated depreciation account balance increased $35,600.
• Equipment costing $51,200 was sold during the year resulting in a $10,900 gain.
• Depreciation expense recorded on the equipment during the year was $65,600.

Which of the following statements is correct with respect to determining cash flow from operating activities?

Using the indirect method, net income is decreased by the $30,000 sales price of the equipment.

Using the indirect method, net income is increased by the $65,600 depreciation expense.

Using the indirect method, net income is increased by the $10,900 gain on the sale of the equipment.

Using the indirect method, net income is increased by the $35,600increase in the accumulated depreciation account balance