Ching Company reported net income of $20,000 for the year. During the year, inventories decreased by $3,000, accounts payable decreased by $4500, depreciation expense was $5,000 and a loss on disposal of equipment of $2250 was recorded. Net cash provided by operations using the indirect method was:
a. $19,250
b. $21,250
c. $25,750.
d. $34,750