Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $ 87,100
Depreciation expense 13,800
Gain on sale of land 6,500
Increase in merchandise inventory 3,850
Increase in accounts payable 7,950

The answer is $98,500

Explanation:

There are two ways to cash provided or used by operating activities - Direct method and indirect method. In direct method, the first line item is Net income or net loss.

Net income $87,100

Depreciation expense 13,800

Gain on sale of land ($6,500)

Increase in merchandise inventory($3,850)

Increase in accounts payable $7,950

Net cash provided or used by operating activities$98,500

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