Reliance Corporation has provided the following information for the year ended December 31, 2014: The equipment account balance increased $216,000. The equipment accumulated depreciation account increased $36,600. Equipment costing $53,200 was sold during the year resulting in a $12,400 gain. Depreciation expense recorded on the equipment during the year was $66,600. Which of the following statements is correct with respect to determining cash flow from operating activities?

Using the indirect method, net income is increased by the $36,600 increase in accumulated depreciation.

Using the indirect method, net income is increased by the $66,600 depreciation expense.

Using the indirect method, net income is increased by the $12,400 gain on the sale of the equipment.

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