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 shown at the top of the following page.

The total amount reported for cash flows from operating activities in the statement of cash flows, using the indirect method, is:
A. \(\$ 33,000\)
B. \(\$ 55,000\).
C. \(\$ 65,500\).
D. \(\$ 77,000\).

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End Cash Accounts receivable Inventories $ 65,000 100,000 145,000 Beginning $ 70,000 90,000 150,000 Prepaid expenses 7,500 8,000 Accounts payable (merchandise creditors) 51,000 58,000