1. Shu Zhang One Company uses the direct method of presenting cash flow from operating activities in the statement of cash flows. Based on the following information, what is the cash provided or used by operating activities?

Net income $75,000

Decrease in Accounts Receivable 10,000

Increase in Inventory 6,000

Decrease in Accounts Payable 4,000

Increase in Income Tax Payable 2,000

Depreciation Expense 7,500

1. $69,000
2. $75,000
3. $80,500
4. $84,500

please explain