Using the following statement of comprehensive income accounts, how would a gain on the sale of land and depreciation expense be reflected in the cash from operating activities section of a statement of cash flows? (These items will be added to or subtracted from income before income tax to compute cash flow from operating activities.)

Sales revenues		$31,000
Gain on sale of land		900
Cost of goods sold		(21,000)
General and administrative expenses		(3,500)
Depreciation expense		(2,250)
Interest expense		(850)
Income tax expense		(2,000)

a.The gain is added, and the depreciation expense is subtracted.

b.The gain is subtracted, and the depreciation expense is added.

c.The gain is not included, and the depreciation expense is added.

d.Neither item is included.

Using the following information, compute the amount of cash provided by operating activities.

Payments for miscellaneous expenses		$1,131
Payment to stockholders as dividends		450
Payment for income tax		235
Payment for interest		143
Collections on account		4,686
Payments for inventory		2,974

ANSWER: __________________