Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Net income $12,400

Depreciation expense 11,900

Payment on mortgage payable 14,900

Gain on sale of land 7,300

Increase in merchandise inventory 2,400

Increase in accounts payable 6,300

Proceeds from sale of land 8,400

A: $8,300.

B:$12,500.

C:$35,800.

D:$20,900.

E: $40,300.