Final answer:
Depreciation expense does not appear on the statement of cash flows when using the indirect method because it is a non-cash charge that does not result in a cash inflow or outflow.
Step-by-step explanation:
The item that does not appear on the statement of cash flows prepared by the indirect method is B: Depreciation expense. The statement of cash flows includes the cash effects of transactions that involve cash inflows and outflows. Depreciation is a non-cash charge and does not involve the movement of cash, thus it is added back to net income on the statement of cash flows when using the indirect method.
On the other hand, collections from customers, net income, and gain from the sale of land are typically included in the statement of cash flows. Collections from customers represent actual cash inflows, net income is the starting point for adjusting non-cash items and changes in working capital in the indirect method, and the gain from the sale of land affects the investing cash flows section but only the physical proceeds from the sale result in a cash inflow, and the gain itself is adjusted out when reconciling net income to cash provided by operating activities.