Smith Company provided the following information on selected transactions for 2019:
Net income ................................................................$20,000,000
Proceeds from short-term borrowings .....................1,200,000
Proceeds from long-term borrowings .......................4,000,000
Purchases of fixed assets ............................................3,200,000
Decrease in inventories ...............................................8,000,000
Proceeds from sale of Smith’s common stock ..........2,000,000
Depreciation expense .....................................................500,000
What is the net increase in cash for the year ended December 31, 2019, as a result of the preceding information?
a. $32,500,000

b. $25,700,000 

c. $16,500,000

d. $12,500,000