The net income reported on the income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year Beginning of Year Cash $ 65,000 $ 70,000 Accounts receivable 100,000 90,000 Inventories 145,000 150,000 Prepaid expenses 7,500 8,000 Accounts payable (merchandise creditors) 51,000 58,000 The total amount reported for cash flows from operating activities on the statement of cash flows using the indirect method is:

a. $33,000.

b. $55,000.

c. $65,500.

d. $77,000.

AppendixLO1