Use the Following Information and the Indirect Method to Calculate

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $\begin{array}{|l|r|}\hline \text { Net income } & \$ 12,300 \\\hline \text { Depreciation expense } & 12,000 \\\hline \text { Payment on mortgage payable } & 15,000 \\\hline \text { Gain on sale of land } & 7,500 \\\hline \text { Increase in merchandise inventory } & 2,050 \\\hline \text { Increase in accounts payable } & 6,150 \\\hline \text { Proceeds from sale of land } & 8,000 \\\hline\end{array}$

A) $12,700
B) $13,900
C) $20,900
D) $28,400
E) $35,900